Shares of Stora Enso Oyj (OTCMKTS:SEOAY) have been downgraded from a hold to a sell rating, according to a report released by Wall Street Zen on Monday. This marks a significant shift in investor sentiment as other financial analysts have also reassessed their ratings for the company.
On April 7, 2023, Barclays downgraded Stora Enso from an “overweight” to an “underweight” rating. Similarly, BNP Paribas issued a report on June 25, 2023, lowering its rating from “hold” to “strong sell.” These revisions reflect growing concerns about the company’s performance in relation to market expectations.
Stora Enso Oyj, a provider of renewable solutions across various sectors, last reported its quarterly earnings on July 23, 2023. The company disclosed earnings per share (EPS) of $0.06, which fell short of analysts’ consensus estimate of $0.07 by $0.01. The revenue for the quarter was reported at $2.84 billion, exceeding the expected $2.47 billion. Despite this positive revenue figure, the company recorded a negative return on equity of 3.89% and a negative net margin of 1.18%.
Looking ahead, equity research analysts anticipate that Stora Enso Oyj will post an EPS of $0.67 for the current fiscal year. This projection underscores the challenges the company faces as it navigates a competitive market.
Based in Finland, Stora Enso Oyj operates in various segments, including Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, Paper, and Other. The company’s Packaging Materials segment focuses on offering virgin and recycled fiber alternatives to fossil-based materials, providing low-carbon, renewable, and recyclable packaging solutions for the food and beverage, pharmaceutical, and transport industries.
As analysts continue to adjust their ratings, stakeholders will be closely monitoring Stora Enso’s performance in the coming months to assess its alignment with market expectations.
