UBS Upgrades Packaging Corp. of America (PKG) to Buy

UBS analyst Anojja Shah upgraded Packaging Corp. of America (NYSE: PKG) from Neutral to Buy with a price target of $248.00 (from $232.00).

The analyst comments: “We upgrade PKG from Neutral to Buy, as we expect the $50/ton June price hike to stick amid improving demand and tight supply. High utilization and prior capacity cuts (10% of industry) support pricing power, potentially adding ~$290M in annualized EBITDA (half in 2026). Our 2026/27 EBITDA estimates are 1.6%/2.0% ahead of consensus and we believe the market is pricing in EBITDA 4%/10% below our 2026/2027 estimates. With zero exposure to the more fragmented European market and a long history of volume and margin outperformance vs. industry, we upgrade to Buy.”

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 $203.17 yesterday.

You May Also Be Interested In

• Kroger (KR) PT Lowered to $63 at UBS as Execution Challenges Persist
• Accenture plc (ACN) PT Lowered at RBC Capital; 'Tough Macro Weighed on Results'
• Forgent Power Solutions (FPS) PT Raised to $73 at TD Cowen