ABN-Amro is recommending Smurfit as a buy for investors. The broker suggests Smurfit is still trading at a substantial discount to its US and European peers and represents good value. Early next year ABN-Amro says there should be reassurances on the group's inventories and an announcement of a further hike in container board prices which augers well for Smurfit.

The shares may also benefit from increased speculation of a merger between Smurfit and its US associate Smurfit Stone. While within the paper and packaging industry there is likely to be further consolidation.

After a very strong start to the year, Smurfit shares have made little progress in recent months. It has been adversely affected by a US sector which has been hit by profit taking, concerns over lumber sales, interest rate worries and a general rotation out of cycles. ABN-Amro insists there has been no deterioration in the fundamental outlook for Smurfit during this period.