Smurfit Westrock (SW) faces near-term earnings pressure from higher costs, though recent US price hikes should support a stronger exit rate into 2027, UBS said in a note.

UBS said Q2 EBITDA should fall within the company's $1.1 billion-$1.2 billion guidance, but warned persistent cost inflation could push results toward the lower end of the range before higher pricing benefit earnings in the second half.

The brokerage cut its 2026 EBITDA forecast by 3% but raised its 2027 and 2028 estimates, citing stronger pricing and easing cost pressures.

UBS reiterated buy rating with a $56 price target.

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