Consensus estimates for forest industry companies for 2026 have continued to be revised downwards during the fourth-quarter reporting season, weighing on share prices, according to Inderes. At the same time, indirect risks stemming from the conflict in Iran are being highlighted, where rising oil prices could drive up costs and dampen demand.
Despite this, Finnish forest groups are considered to be in a relatively strong position compared to competitors with a greater reliance on natural gas. In the short term, however, valuations are deemed unattractive, characterized by high P/E ratios and a weak outlook.
"Due to the weak short-term outlook and high short-term earnings valuations, our stance on the sector remains cautious," Inderes writes.
Stora Enso Oyj is a Finland-based provider of renewable solutions in packaging, biomaterials, wooden construction and paper industries. The Company has six divisions: the Packaging Materials division provides renewable packaging materials based on both virgin and recycled fiber, the Packaging Solutions division develops and sells premium fiber-based packaging products and services; the Biomaterials division offers a variety of pulp grades to the paper, board, tissue, textile and hygiene product producers; the Wood Products division is a sawn wood producer and a provider of wood-based solutions to the construction industry; the Forest division manages Stora Enso’s forest assets in Sweden and is responsible for wood sourcing for Stora Enso’s Nordic, Baltic and Russian operations and the Paper division, that provides paper products made from recycled and virgin fiber. Stora Enso Oyj operates worldwide.
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