Analyst George Staphos from Bank of America Securities maintained a Buy rating on Packaging (PKG – Research Report) and keeping the price target at $264.00.
George Staphos has given his Buy rating due to a combination of factors that highlight Packaging Corp. of America’s promising outlook. The company recently announced significant management changes, which are expected to strengthen its leadership team and drive strategic initiatives. Additionally, PKG is optimistic about its growth prospects in the containerboard sector, with strong bookings and a strategic shift towards discussing shipments in square footage terms rather than tons.
PKG is also actively working on pricing strategies, having implemented a $70/ton increase, which is higher than previously reported figures. The company is increasing its capital expenditures to enhance its facilities, which is anticipated to support revenue and EBITDA growth. Despite some challenges, such as weather-related impacts on billings, PKG is confident in achieving past peak EBITDA per ton levels as it executes its pricing and project plans effectively.
PKG’s price has also changed slightly for the past six months – from $204.910 to $210.750, which is a 2.85% increase.