UPDATE: KeyBanc Downgrades Graphic Packaging Holding Company (GPK) to Underweight

January 18, 2022 3:49 AM EST
Get Alerts GPK Hot Sheet
Price: $20.35 -0.2%

Rating Summary:
    18 Buy, 4 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 4 | Down: 15 | New: 18
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(Updated - January 18, 2022 4:59 AM EST)

KeyBanc analyst Adam Josephson downgraded Graphic Packaging Holding Company (NYSE: GPK) from Sector Weight to Underweight with a price target of $17.00.

The analyst comments "We're also downgrading Graphic Packaging (GPK) from Sector Weight to Underweight, with a $17 price target. Graphic is the most highly levered company in our coverage universe; is coming off of two straight FY guidance reductions because its costs have risen more quickly than have its prices; will have to deal with the consequences of falling CPG volumes, bearing in mind that CPG companies are among its largest customers; will eventually have to contend with a major boxboard capacity addition that was just announced last month, assuming the acquisition closes (which we do); and has provided what we believe are optimistic 2022 projections, such that we believe the Company is more likely to disappoint on earnings than to surprise to the upside. In addition, the stock is trading above its historical average multiple on the consensus 2022 adj. EBITDA estimate even though we believe that estimate represents peak earnings; it embeds the largest price/cost benefit that Graphic will have realized in many years."

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 $19.49 yesterday.

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