UPDATE: KeyBanc Downgrades Graphic Packaging Holding Company (GPK) to Underweight
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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."
Shares of Graphic Packaging Holding Company closed at $19.49 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades
Related EntitiesKeyBanc, Earnings, Definitive Agreement
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