UPDATE: Goldman Sachs Starts Packaging Corp. of America (PKG) at Sell
- Wall Street dips on Trump protectionism, Qualcomm drag
- Yahoo! (YHOO) Tops Q4 EPS by 4c; Sees Verizon Deal Closing in Q2, Not Q1
- Aetna's (AET) Humana (HUM) Takeover Blocked by Judge as Anticompetative
- Trump signs order withdrawing U.S. from Trans-Pacific trade deal
- After-Hours Stock Movers 1/23: (REXX) (MRCY) (SYNC) Higher; (FSM) (OCUL) (CASC) Lower (more...)
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
(Updated - September 22, 2016 9:09 AM EDT)
Goldman Sachs initiated coverage on Packaging Corp. of America (NYSE: PKG) with a Sell rating and a price target of $77, implying 6% downside. Analyst Brian Maguire said the stock's premium is unjustified, and he sees limited growth.
"Our rating is based on: 1) PKG’s 0.5x to 1.0x EBITDA valuation premium to Containerboard peers (IP, WRK, KS), which we believe is too high based on PKG’s non-Containerboard exposure to UCFS (14% of EBITDA); 2) our neutral to slightly negative view on Containerboard (86% of EBITDA), and in particular our view that investor expectations for price increases are too optimistic; 3) relatively few identifiable growth drivers within existing product lines," said Maguire.
Shares of Packaging Corp. of America closed at $81.66 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- General Electric (GE) PT Lowered to $35 at UBS Following 4Q Report
- UPDATE: Seaport Global Securities Upgrades Rockwell Collins (COL) to Buy
- UPDATE: Seaport Global Securities Upgrades Columbus McKinnon (CMCO) to Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Hot Comments, New Coverage
Related EntitiesGoldman Sachs, Raising Prices
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!