Davy Stockbrokers is predicting an improved outlook for the Jefferson Smurfit group. Much of the upturn is due to upbeat prospects in the US market and increases in container-board prices which are due to kick in next month. At current levels, Davy believes the share price looks fundamentally undervalued.

"We believe sentiment for the shares will improve significantly as the year progresses, particularly as evidence builds that the strong recovery in the US sector is beginning to feed through to Europe and the rest of the world. There looks to be very significant share price upside from these levels," the broker says. It is forecasting that Smurfit's share price can rise to €3.25 (£2.56) by year end.