Jefferies Cuts Price Target on Packaging Corp. (PKG) to $93; Reiterates Buy

October 21, 2016 8:47 AM EDT
Get Alerts PKG Hot Sheet
Price: $87.07 +2.21%

Rating Summary:
    8 Buy, 6 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
Trade PKG Now!
Join SI Premium – FREE

Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.

Jefferies maintained a Buy rating on Packaging Corp. of America (NYSE: PKG), and cut the price target to $93.00 (from $96.00), following the company's 3Q earnings report. Jefferies decided to cut estimates to reflect the full $15/ ton cut in linerboard flowing through all of its box business. PKG was also more forthcoming on the containerboard price increase than anticipated, and even baked in pricing in 4Q16.

Analyst Philip Ng commented, "While investors were focused on box pricing in 3Q, we thought mgmt's commentary on the Oct price hike was constructive and gives us confidence it will stick. Separately, with PKG will likely running out of board capacity by late 2017 / early 2018, we believe it's likely to pursue a mill acquisition, which provides good optionality for the stock."

For an analyst ratings summary and ratings history on Packaging Corp. of America click here. For more ratings news on Packaging Corp. of America click here.

Shares of Packaging Corp. of America closed at $81.13 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change

Related Entities

Jefferies & Co, Earnings, Definitive Agreement

Add Your Comment