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Smurfit Kappa Group (SKG)

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Wednesday preview: CPI data, Smurfit Kappa and Whitbread in focus

12 Feb 19

LONDON (ShareCast) - (Sharecast News) - Barring surprises on the global trade or Brexit fronts, the market spotlight on Wednesday is likely to fall on US consumer price data covering the month of January.
Forecasts are for headline inflation to fall back from December's pace of 1.9% year-on-year to 1.5%, although at the so-called 'core' level CPI gains were seen slowing from 2.2% to 2.1%.

Also scheduled for Wednesday were speeches by Atlanta Fed boss, Raphael Bostic, at the European Financial Forum, in Dublin, alongside remarks by Cleveland Fed chief, Loretta Mester, on the economic outlook and monetary policy.

Due out as well, in the evening, were the latest US Treasury budget figures, for the month of December.

In the UK, consumer price data for the month of January was slated for release at 0930 GMT.

Among the corporates that are set to update markets on Wednesday is Smurfit Kappa.

Numis's Kevin Fogarty had penciled-in full-year EBITDA for the paper and packaging manufacturer of €1.519bn (consensus: €1.531bn) on sales of €9.181bn for growth of 7.2%.

In Fogarty's opinion, the feature of the company's results was likely to be its margin improvement.

Also, given expected solid end-market demand, he expected there to be increased focus on near-term industry capacity expansion and the pricing environment.

"In our view, the key share price catalyst will be management outlook for the current financial year."

Whitbread will also be in the spotlight as the Costa coffee-owner hosts its Capital Markets Day.

For analysts at UBS, investors' attention will be on the company's update on its property strategy given the expectation that it will reduce its freehold versus leasehold mix in a bid to unlock capital.

Nevertheless, there were other aspects that needed clarifying, with Numis pointing out that the size of any capital return following the disposal of Costa had yet to be announced, although Numis's Tim Barrett believed it would be in a range between 2.9bn to 3.2bn.

"While the share price has travelled well into the event (+12% YTD) and there may be few surprises, it remains one of our top picks for its defensive growth attributes," Barrett added.

Wednesday February 13


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Consumer Price Index (US) (13:30)

Industrial Production (EU) (10:00)

MBA Mortgage Applications (US) (12:00)


BB Healthcare Trust (Red), Smurfit Kappa Group, Tullow Oil


Artemis VCT, RWS Holdings, Urban&Civic


RWS Holdings, Time Out Group


Consumer Price Index (09:30)

Producer Price Index (09:30)

Retail Price Index (09:30)




TUI AG Reg Shs (DI)

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


Market Data

Currency UK Pounds
Price 2,830.00p
Change Today -34.00p
52 Week High 3,010.00p
52 Week Low 2,096.00p
Volume 242,414
Shares Issued 237.90m
Market Cap 6,732m


  Latest Previous
  Final Interim
Ex-Div 16-Apr-20 26-Sep-19
Paid 15-May-20 25-Oct-19
Amount 80.90¢ 27.90¢