Packaging & Forest Products
Vertical Research sees two key themes dominating the investment discussion in Packaging and Forest Products over the next one to two years: (1) the secular structural improvements in U.S. containerboard and global fluff pulp, and (2) relative winners and losers depending on the economic environment that develops after a strong 2018. 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 paper/pulp names as “relative winner” in an environment of higher longer-term interest rates induced by continued-healthy economic growth. On the other hand, we see the rigid/flexible packaging companies as well as the timber REITs as being more defensive should the economy weaken considerably or slip into a recession.
- WestRock (WRK)
- Berry Global (BERY)
- Louisiana-Pacific Corp (LPX)
September 18, 2019
VERTICAL RESEARCH PARTNERS TOP PICKS - REMAINDER OF 2019 UPDATE
September 17, 2019
CONTAINERBOARD: STRONG SET-UP REMAINS AS INVENTORIES KEEP FALLING DESPITE TEPID DEMAND
September 12, 2019
CONTAINERBOARD: WILL IN-TRANSIT INVENTORY PLUNGE IMPACT AUGUST STATS?