Broker predicts Smurfit profits

Stockbroker Salomon Smith Barney is recommending Smurfit as a buy for investors. In its latest report on the European pulp and paper sector, the broker predicts a surge in profitability at Smurfit next year which should benefit shareholders. Smurfit is undergoing an extensive restructuring programme at the moment which is expected to eventually boost the group's earnings potential. The stock has already begun to recover on the back of this initiative while the enhanced performance of Smurfit Stone is also a very positive factor. Salomon predicts Smurfit will achieve a target price of €3.30 over the next 12 months.