Stora Enso, UPM Fall After Deutsche Cuts Both Ratings

Stora Enso Oyj (STERV) and UPM-Kymmene Oyj (UPM1V), Europe’s two largest papermakers, fell in Helsinki trading after Deutsche Bank AG lowered its recommendation on the shares to “sell.”

European paper prices are unlikely to rise this year and demand will fall 5 to 6 percent, analyst Mathias Carlson said in a report. He cut his earnings-per-share estimates for this year by 50 percent for Stora and almost 60 percent for UPM. Papermakers will be hurt by falling raw-material costs, the weakening of the British pound against the euro, and the need to run mills below capacity, he said.

Stora dropped 44 cents, or 8.1 percent, to 4.98 euros. UPM lost 5.1 percent to 8.35 euros. Both companies are based in the Finnish capital.

To contact the reporter on this story: Diana ben-Aaron in Helsinki at

To contact the editor responsible for this story: Andrew Noel at

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