Goldman Sachs Raises GRM Target To $14

Goldman Sachs is raising its 12-month DCF based price target for Graham Packaging Co. Inc. (NYSE: GRM) to $14 “to reflect our higher 2012 EPS estimate.”

“We view GRM as interesting for value-oriented investors with the stock trading at a 17% free cash flow yield,” Goldman Sachs writes. “Based on our 2011 estimates, GRM trades at 6.4X EBITDA vs. peers of 7.1X; we attribute the discount to GRM's higher leverage (4.7X vs. 1.8X).”