UPDATE: Goldman Sachs Starts Packaging Corp. of America (PKG) at Sell
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
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
- Jefferies Raises Price Target on Casey's General Stores (CASY) Following 2Q Earnings Report
- Oppenheimer Raises Price Target on CarMax (KMX) to $72 Ahead of 3Q
- KLR Group Cuts Price Target on Bill Barrett (BBG) to $9; Reiterates 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!