Goldman Said Buy Graphic Packaging (GPK) As Boxboard Prices Hold in December

Analysts at Goldman Sachs noted that US boxboard prices unchanged in December and they are recommending investors buy Graphic Packaging Holding Company (NYSE: GPK) to get exposure.

The firm notes US folding boxboard prices were unchanged in December versus November 2011, which was in line with their forecast. Over the last six months, boxboard prices
have been flat, but are up 11%-17% since early 2010, and producer margins are healthy.

Goldman is reiterating their Buy rating on GPK given its leverage to our constructive boxboard outlook, and strong FCF profile and focus on deleveraging. The firm said based on 2012 estimates, GPK offers a 16.4% FCF yield versus peers of 9.0%.

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