BMO Capital Markets cut shares of Packaging Corp. of America (NYSE:PKG) from an outperform rating to a market perform rating in a research report sent to investors on Wednesday morning, TheFlyOnTheWall.com reports. The firm currently has $55.00 price target on the stock, up from their previous price target of $50.00.
“Company EPS guidance for Q3/13 is $0.88 compared to the Mean of $0.87 and our previous forecast of $0.90. The guidance implies that $25/ton of the $50/ton containerboard price increase will be implemented in Q3/13. Our linerboard list price forecast is $663/ton for 2013 and $700/ton for 2014. Packaging Corp’s EPS sensitivity to a $50/ton price change is $0.87. Since Jan.1/2013, European kraft linerboard prices have increased by $15/ton to $713/ton while the recycled grade increased by $22/ton to $533/ton. Chinese recycled linerboard markets are exceptionally weak with new capacity forcing closures of older mills. Chinese recycled linerboard prices are about 10% below European levels and 30% below North American levels.,” BMO Capital Markets’ analyst commented.
Packaging Corp. of America (NYSE: PKG) traded up 0.11% on Wednesday, hitting $52.63. Packaging Corp. of America has a 52-week low of $29.82 and a 52-week high of $53.94. The stock’s 50-day moving average is currently $49.60. The company has a market cap of $5.076 billion and a price-to-earnings ratio of 24.79.
Separately, analysts at Ned Davis Research downgraded shares of Packaging Corp. of America from a buy rating to a neutral rating in a research note to investors on Monday, May 13th.
One research analyst has rated the stock with a sell rating, eleven have given a hold rating and two have given a buy rating to the company’s stock. The stock has an average rating of Hold and an average target price of $46.81.
Packaging Corporation of America is a producer of containerboard in the United States. The Company’s corrugated products manufacturing plants produce a variety of corrugated packaging products, including conventional shipping containers used to protect and transport manufactured goods, multi-color boxes and displays.
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