Deutsche Bank Downgrades Packaging Corp. of America (PKG) to Hold; Sluggish Demand

Deutsche Bank downgraded Packaging Corp. of America (NYSE: PKG) from Buy to Hold with a price target of $34.00.

Analyst, Mark Wilde, said, "Financially, PKG is strong and well-hedged against most cost issues. The completion of energy projects at its two southern mills is boosting earnings. At the same time, lower capital spending will significantly increase PKG's cash generation. PKG’s stock has rallied in recent weeks in anticipation of successful implementation of the $50/ton containerboard price hike. However, with sluggish demand and continued drop in OCC costs, we’re a bit cautious on implementation of the price hike. At current levels, we think the stock is fairly valued."

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 $33.27 yesterday.

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