Ranpak Holdings (PACK) PT Raised to $10 at Craig-Hallum

Craig-Hallum analyst Greg Palm raised the price target on Ranpak Holdings (NYSE: PACK) to $10.00 (from $8.00) while maintaining a Buy rating.

The analyst comments "Earlier this morning, Ranpak announced a transformative-like deal with Walmart, significantly broadening its relationship, making it the preferred protective packaging vendor for this retail giant. Notably, the agreement is significantly larger than what was expected and what it appears, based on the numbers provided in the 8-K. Specifically, there is $100M in automation spend that we expect will be recognized as revenue over the next few years. In addition, there is $200M of paper (consummable spend) that will be recognized over a 10-year period (based on the warrant agreement) but the actual revenue impact of that will be much larger (probably 3x or more). So in reality, the total size of this deal could me more like $700-800M vs. the $300M mentioned in the 8-K. This agreement is a major validation for Ranpak and its broad-based protective packaging offering and should be a positive catalyst for the stock. We are not making any estimate changes at this point but are raising our price target to $10."

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