July 4 (Bloomberg) -- Stora Enso Oyj, Europe’s largest papermaker, climbed after Bank of America Merrill Lynch placed the company on its list of most-preferred stocks as Stora continues its cost-cutting drive.
Stora shares rose as much as 2.6 percent, the biggest intraday advance since June 26. The stock was up 2.3 percent at 2:55 p.m. in Helsinki, where the company is based. That took the advance to 0.4 percent this year, compared with a 15 percent drop in the Euro Stoxx Basic Resources index during the period.
Stora Enso shows “potential for substantial disposals,” Merrill analysts including Kartik Swaminathan said in a note. The company was added to the bank’s list of most-preferred basic materials stocks today.
Stora is reducing its exposure to waning businesses such as supplying European newsprint, as it focuses on more environmentally friendly packaging in growing consumer markets. Last month the company said it will cut about 2,500 jobs, 9 percent of its total workforce, as part of a 200 million-euro ($260 million) savings program.
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