An encouraging trading statement from recycled packaging group DS Smith (SMDS) sends shares in the £3.6 billion cap 2.1% higher to 393.9p this morning.
The group, which focuses on packaging for consumer goods, says volume growth remains good while margins, returns and earnings per share continue to show strong growth.
Group chief executive Miles Roberts says this growth is being achieved despite there being no change in market conditions, which he’s previously described as challenging.
The growth reflects the gains in market share that DS Smith is realising via its value selling proposition.
DS Smith completed the acquisitions of Duropack, Lantero and the corrugated business of Cukurova in the first half of the year and it says their performance has been better than originally anticipated. The acquisitions increase DS Smith’s presence in the growing South Eastern Europe region.
DS Smith’s share price has risen by 4.9% since we added it as a Shares Play of the Week on 16 April. Investec’s target price is 430p, implying 9% upside.