Industry Reports

Deutsche Bank Reports Summaries

071019 Deutsche Bank Report - Dr. Paper's Weekly Wrap Up (10/19/07)

Deutsche Bank - Equity Research

* UPM and Stora both issued profit warnings this weak.  Cost inflation and weak US$ were headwinds.  DB's European analyst, Mathias Carlson, cut estimates and price targets.

* PKG reported a solid 3Q and pointed to a higher 4Q, raised its dividend and pointed to share repurchases.  The result confirms our thesis that box hikes are going through better than expected after Sept ctbd hike.  Sept industry numbers were also positive – box vol's up 1.2% y/y (blended basis) and lower inventories.

* We initiated on Sino-Forest (TRE.TO) today with Sell rating & C$12 price target. Income statement metrics look great, but huge capex requirements = negative free cash flow.   Full-length initiation report will follow shortly.