MARKET TALK: Goldman Revises Paper, Pulp Stock Views >NSG.OS

11th Jun 2010 09:31

0831 GMT [Dow Jones] Goldman Sachs revises its outlook for the European paper and pulp industry. "Despite industry overcapacity, we raise our average paper pricing forecasts to reflect support from tight inventories and cost recovery." The bank says pulp prices have increased significantly since their troughs and expects this to have a particularly positive impact on fine paper grades. Its forecasts of the rise in paper prices for '10 and '11 have been raised to +0.8% and +1.6% respectively. GS upgrades M-real (MRLBV.HE) to buy from neutral with a target price of EUR5, raised from EUR2.80. Holmen (HOLM-B.SK) target price raised to SEK225 from SEK181, Huhtamaki (HUH1V.HE) to EUR10.60 from EUR9.90, UPM-Kymmene (HUH1V.HE) to EUR20.30 from EUR13.80, Metso (MEO1V.HE) to EUR32.30 from EUR31.70, Stora Enso (STERV.HE) to EUR11.30 from EUR9.60, Mondi (MNDI.LN) to GBP0.713 from GBP0.570, Smurfit Kappa (SK3.DB) to EUR13.20 from EUR12.80 and Norske Skog (NSG.OS) to NOK12.10 from NOK11.90. SCA (SCA-B.SK) target price is cut however, to SEK135 from SEK148. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 11, 2010 04:31 ET (08:31 GMT)