DS Smith "ticks all the boxes", Investec reiterates 'buy'

26th Jun 2014 10:18

In spite of the negative reaction to DS Smith's annual results on Thursday, Investec has recommended investors 'buy' shares of the consumer goods packaging group after its report "tick[ed] all the boxes"."We see these full-year results as solidly in line with our and consensus expectations in what remain difficult end markets," the broker said. Pre-tax profit surged to £167m in the 12 months to April 30th from £82m a year earlier as revenue increased 10% to £4.03m. Earnings per share climbed 25% to 21.4p.Organic corrugated packaging volumes grew 2.2%, ahead of the corrugated packaging market."Corrugated box volumes were broadly stable during the second half, ahead of target and show continued market share gains," Investec said.The broker has placed its 390p target price for the shares under review.Despite the positive comments, the stock was down nearly 5% at 290.2p by 10:25 on Thursday.BC