Jefferies sees lower 2015 profit for DS Smith

2nd Jul 2014 13:56

Jefferies International has reduced its profit forecasts for DS Smith, but says the recycled packaging maker could cash in on acquisitions.Jefferies said it was cutting its 2014/15 annual pre-tax profit and earnings per share forecasts by 5% to £281.3m and 23p respectively in light of foreign exchange and economic pressure in Europe. It also reduced its price target to 310p from 335p.Shares in the group, whose clients include consumer goods giants such as Unilever and Nestlé, have fallen nearly a tenth since June, when it reported higher annual profits but said it expected the consumer economic environment to stay tough.Jefferies advised investors to 'hold' the shares, however, saying the group could cash in on medium-term opportunities including a Eurozone economic recovery, ongoing market share gains and potentially earnings-enhancing mergers and acquisitions.Shares in DS Smith climbed 5p or 1.8% to 285.4p at 13:06.PW