Deutsche Bank Upgrades Graphic Packaging Holding Company (GPK) to Buy
Deutsche Bank upgraded Graphic Packaging Holding Company (NYSE: GPK) from Hold to Buy with a price target of $8.50 (from $7.00).
The firm comments, "GPK has done a good job of growing volumes thru new product wins. Meanwhile, synergies from recent acqn’s & cost benefits from Macon boiler project provide solid EBITDA runway over the next 12-24 months. Relatively stable end-mkts & cost pass-thru mechanisms provide steady performance. Cashflows appear robust and should drive deleveraging (DB expects ~2.5x by yr-end 2014 from the current 3.5x). Finally, reduction in ownership by top 4 shareholders to 53% improves liquidity."
No change to FY13 EBITDA of $687MM. Raising FY13 EPS est from $0.45 to $0.50/share (aided by lower share count) & FY14 from $0.50 to $0.55.
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 $7.24 yesterday, with a 52 week range of $4.51-$7.29.
The firm comments, "GPK has done a good job of growing volumes thru new product wins. Meanwhile, synergies from recent acqn’s & cost benefits from Macon boiler project provide solid EBITDA runway over the next 12-24 months. Relatively stable end-mkts & cost pass-thru mechanisms provide steady performance. Cashflows appear robust and should drive deleveraging (DB expects ~2.5x by yr-end 2014 from the current 3.5x). Finally, reduction in ownership by top 4 shareholders to 53% improves liquidity."
No change to FY13 EBITDA of $687MM. Raising FY13 EPS est from $0.45 to $0.50/share (aided by lower share count) & FY14 from $0.50 to $0.55.
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 $7.24 yesterday, with a 52 week range of $4.51-$7.29.