Deutsche Bank Upgrades Packaging Corp. of America (PKG) to Buy, Greater Chance Price Hikes to Stick

Deutsche Bank upgraded Packaging Corp. of America (NYSE: PKG) from Hold to Buy with a price target of $37.00 (from $34.00).

As part of a broad sector call, the firm is increasing our probability of success estimate on the current containerboard hike from 50% to 75-80%. The cited two factors: (1) It is hard to remain neutral in the face of a 115K/ton m/m drop in inventories to the lowest August level in decades & a 97.5% operating rate, (2) conversations with privately-held players across the trade convinced us that we have been too cautious.

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 $33.04 yesterday.

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