Jul. 20 at 8:45 PM
Bank of America highlighted Packaging Corp. of America as its top paper-sector pick, citing improving fundamentals across packaging, beverage cans, and specialty packaging markets. The firm expects companies with pricing power, volume growth, and strong free cash flow generation to outperform, with several names offering double-digit upside from current valuations.
BofA rates Packaging Corp. of America a Buy with a
$263 price target, implying roughly 14% upside from its recent share price of
$231. Analysts point to the company's exposure to containerboard price increases, positive volume growth prospects, and robust free cash flow generation. PKG is also viewed as well positioned to benefit from potential additional containerboard price hikes later in 2026.
While the company recently indicated it may miss its second-quarter earnings guidance, UBS reiterated its Buy rating. Wells Fargo downgraded the stock to Equal Weight on valuation concerns.
$PKG