Smith (DS) (SMDS)

Sector:

Manufacturing

Index:

FTSE 100

309.10p
   
  • Change Today:
      4.60p
  • 52 Week High: 462.30p
  • 52 Week Low: 293.10p
  • Currency: UK Pounds
  • Shares Issued: 1,375.92m
  • Volume: 2,630,083
  • Market Cap: £4,252.98m
  • RiskGrade: 168

Credit Suisse says DS Smith trading at undeserved premium to peers

By Alexander Bueso

Date: Monday 01 Nov 2021

LONDON (ShareCast) - (Sharecast News) - Credit Suisse bumped up its target price for shares of DS Smith from 470.0p to 500.0p, as demand continued to surprise to the upside.


However, they kept their recommendation unchanged at 'neutral', arguing that the stock was changing hands at an undeserved premium.

On average, the Swiss broker revised its 2022-24 earnings per share estimates for the packaging specialist by 4%.

"We maintain our view that the market underestimates demand and, thus, the longevity of a positive pricing cycle," it said.

They also noted the "incremental growth opportunities", - beyond the near-term demand strength - from sustainable packaging as corporates review their strategies.

Credit Suisse also highlighted how strength in containerboard pricing was more than offsetting "soaring" old corrugated container prices, energy and transportation costs.

On the flip-side, at 8.9 times' the broker's estimated EV/EBITDA multiple for the firm in fiscal 2022, Credit Suisse said the shares were trading at a 9% calendar adjusted equity premium to better-performing peers.

"We do not view this premium as warranted considering weaker return profile and increased earnings volatility caused by recent, in our view, expensive acquisitions."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Smith (DS) Market Data

Currency UK Pounds
Share Price 309.10p
Change Today 4.60p
% Change 1.51 %
52 Week High 462.30p
52 Week Low 293.10p
Volume 2,630,083
Shares Issued 1,375.92m
Market Cap £4,252.98m
RiskGrade 168

Smith (DS) Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
90.51% above the market average90.51% above the market average90.51% above the market average90.51% above the market average90.51% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
54.72% below the market average54.72% below the market average54.72% below the market average54.72% below the market average54.72% below the market average
69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average
Income
68.07% above the market average68.07% above the market average68.07% above the market average68.07% above the market average68.07% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
80.52% below the market average80.52% below the market average80.52% below the market average80.52% below the market average80.52% below the market average
85.71% below the sector average85.71% below the sector average85.71% below the sector average85.71% below the sector average85.71% below the sector average

What The Brokers Say

Strong Buy 7
Buy 1
Neutral 3
Sell 0
Strong Sell 0
Total 11
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Smith (DS) Dividends

  Latest Previous
  Interim Final
Ex-Div 07-Apr-22 07-Oct-21
Paid 03-May-22 01-Nov-21
Amount 4.80p 8.10p

Trades for 27-May-2022

Time Volume / Share Price
16:45 6,073 @ 308.50p
16:45 6,073 @ 308.50p
16:35 958,273 @ 309.10p
16:29 231 @ 308.50p
16:29 40 @ 308.50p

Smith (DS) Key Personnel

CEO Miles Roberts

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