Oil prices push higher amid worries over Russian supply disruptions
Investing.com - Berenberg initiated coverage on Svenska Cellulosa Aktiebolaget SCA (OTC:SVCBF) with a Buy rating and a price target of SEK150.00, representing 15% upside potential from current levels.
The Swedish forestry company’s risk profile is comparable to a real asset investment, according to Berenberg, due to its significant forest holdings valued at SEK107 billion as of year-end 2024.
Berenberg noted that these forest assets justify the entire group’s enterprise market value and provide Svenska Cellulosa with higher wood self-sufficiency compared to industry peers.
This self-sufficiency enhances the company’s profit margins and reduces profit volatility, the research firm explained in its analysis.
Berenberg also highlighted Svenska Cellulosa’s competitive scale, modern industrial assets, and relatively unlevered balance sheet as factors contributing to what it views as a high-quality corporate profile.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.