Deutsche Bank Starts Graphic Packaging Holding Company (GPK) at Hold; Changes in Ownership Structure Possible
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Price: $11.40 -3.72%
Rating Summary:
11 Buy, 9 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
11 Buy, 9 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank initiates coverage on Graphic Packaging Holding Company (NYSE: GPK) with a Hold. PT $6.00.
Deutsche analyst said, "Graphic’s stock has increased more than 5x from its early 2009 lows, aided by an impressive deleveraging performance. We think the equity now reflects much of that good news. As leverage approaches a 2.5-3.0x net debt/EBITDA target range, we think GPK’s focus will shift toward returning cash to shareholders and accelerating growth. At current levels, we think the stock is fairly valued."
"With the strong stock performance, we think there is a possibility that long-time private equity owner(s) could reduce their stakes. Four private groups (Texas Pacific Group, the Coors family, Clayton Dubilier & Rice, and Exor) currently own 68% of Graphic’s shares. Liquidity should improve as these large shareholders reduce their holdings."
Sees FY12/13 EPS at $0.34/0.42
For an analyst ratings summary and ratings history on Graphic Packaging Holding Company click here. For more ratings news on Graphic Packaging Holding Company click here.
Shares of Graphic Packaging Holding Company closed at $5.52 yesterday.
Deutsche analyst said, "Graphic’s stock has increased more than 5x from its early 2009 lows, aided by an impressive deleveraging performance. We think the equity now reflects much of that good news. As leverage approaches a 2.5-3.0x net debt/EBITDA target range, we think GPK’s focus will shift toward returning cash to shareholders and accelerating growth. At current levels, we think the stock is fairly valued."
"With the strong stock performance, we think there is a possibility that long-time private equity owner(s) could reduce their stakes. Four private groups (Texas Pacific Group, the Coors family, Clayton Dubilier & Rice, and Exor) currently own 68% of Graphic’s shares. Liquidity should improve as these large shareholders reduce their holdings."
Sees FY12/13 EPS at $0.34/0.42
For an analyst ratings summary and ratings history on Graphic Packaging Holding Company click here. For more ratings news on Graphic Packaging Holding Company click here.
Shares of Graphic Packaging Holding Company closed at $5.52 yesterday.
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