Aug. 28 at 3:07 PM
Bank of America upgraded Silgan Holdings and International Paper to Buy from Neutral in a Thursday note on the packaging and paper/forest products sector, citing valuation support and stronger pricing dynamics.
BofA said the tough Q2 earnings season saw packaging/box stocks fall ~5% vs. the S&P 500 since June 30. Analysts raised containerboard price forecasts, already above consensus.
For SLGN, they noted the recent stock drop offers an attractive entry point, with shares trading at ~11–12x FY25–26 EPS vs. historical ~14x. Despite weak beverage closure volumes and food can customer bankruptcies, BofA sees a rebound potential justifying the Buy.
For IP, stronger pricing is the key driver. BofA now has Buy ratings across all three of its covered box companies.
$SLGN $IP $BAC