Inderes has reiterated its "reduce" recommendation for UPM-Kymmene, maintaining its target price at 24 euros following rival Mondi's weak third-quarter report.
Mondi's results were seen as disappointing due to weak demand, overcapacity, and price pressure--factors that Inderes believes are also negatively impacting other forestry companies such as UPM, Stora Enso, and Metsä Board.
The analysis firm notes that Mondi expects the challenging market situation to persist into the fourth quarter, with continued price pressure and weak demand across several product segments.
Following the update, Mondi's share price fell by around 16 percent, dragging Finnish forestry stocks down by 4–6 percent.
Inderes continues to see no signs of improvement in terms of demand, pricing, or cost levels within the sector and assesses that estimates for forestry companies may come under further pressure.
