Stora Enso: We still favor the peers in the sector

We added M&As announced by the company in September to our estimates and after Friday's Q3 report, we updated our estimates to include the further weakened economic outlook and other market data. Short-term estimate changes are minimal, but we raised the required return due to increased interest rates. Stora Enso's share is already cheap compared to historical levels, but due to increased interest rates and the earnings trend about to make a downturn, we do not expect the market to be enthusiastic about the lowish valuation. We favor UPM and Metsä Board in the sector that still offer slightly more attractive short-term expected returns than Stora Enso.