Greif initiated with Market Perform on valuation at Raymond James

Raymond James last night initiated coverage of Greif with a Market Perform rating without a price target. The firm is constructive on Greif’s evolution from a lower growth, lower margin businesses to a diversified packaging company focused on growing more stable and less cyclical end markets with specialized and higher margin products. Nearer term, however, the company remains a cyclical vehicle with shares rising 14% since July 9 “on what appears to be a cyclical revival that has stretched valuation,” the analyst tells investors in a research note.