UBS Reiterates Buy Rating on Packaging Corp. of America (PKG) Despite Possible Q2 Earnings Shortfall

UBS analyst Anojja Shah reiterated a Buy rating and $248.00 price target on Packaging Corp. of America (NYSE: PKG).

The analyst commented, "PKG presented at a conference today and noted that it could miss the 2Q EPS guide ($2.33, consensus at $2.36, UBSe at $2.38). The main culprits were $10-12M of higher freight and OCC costs (-$0.09), and another $0.03- $0.04 impact from lower outside sales/exports. Management implied the guide was still possible if June vols stay at current strong levels and/or there is some flattening or easing of freight costs, though they are not expecting that. While this was not an official preannouncement, the possibility that PKG could miss the guide was a disappointment and was reflected in the ~5% decline today."

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 $216.64 yesterday.

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