Packaging and Forest Products
Vertical Research sees two key themes dominating the investment discussion in Packaging and Forest Products over the next one to three years: (1) the secular structural improvements in U.S. containerboard and global fluff pulp, and (2) relative winners and losers from potential changes in regulations, corporate tax policy, and longer-term interest rates in the US. The virgin fiber-based United States containerboard/box system should benefit from its near-complete vertical integration coupled with a looming tightness in recyclable materials required by overseas producers. We also see the global market for fluff, or absorbent, pulps benefiting from recent consolidation moves. We also see the containerboard and fluff pulp names as “relative winners” in an environment of lower corporate tax rates and higher longer-term interest rates induced by accelerated economic growth. On the other hand, we see the rigid/flexible packaging companies as well as the timber REITs as being less positively impacted in such an environment.
- International Paper Co (IP)
- Domtar Corp (UFS)
O-I buys Mexican bottler for $2.15B 139
July 28, 2017
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EPS Estimates Reduced on Another Leg Down in Guidance
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BOISE CASCADE - CONSIDERING OPTIONS FOR RETURNING CASH
Patient Investors Soon to be Rewarded?
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INTERNATIONAL PAPER - BECOMING A "GROWTH" COMPANY?
Box Volume Growth Accelerating