Graphic Packaging downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Kyle White earlier today downgraded Graphic Packaging to Hold from Buy with a price target of $26, down from $30. The analyst had been bullish on the name over the past two years on its price-cost being above expectations. However, this thesis has played out and there is not material upside to near-term estimates following the Graphic’s guidance raise last quarter, the analyst tells investors in a research note. The firm sees a lack of earnings growth next year as the company’s price-cost turns negative and with labor inflation offsetting productivity benefits. Any further price cuts on Graphic Packaging’s paperboard grades creates risk to the downside, adds Deutsche Bank. It expects the shares to be range-bound over the next year on a relative basis.