UPDATE: Deutsche Bank Downgrades Packaging Corporation of America to Hold on Raised Estimates
In a report published Monday, Deutsche Bank analyst Mark Wilde downgraded the rating on Packaging Corporation of America (NYSE: PKG) from Buy to Hold, but raised the price target from $42.00 to $46.00.
In the report, Wilde noted, “We expect the lion's share of the increase to be rolled into c'board & box prices during H2. Our new assumptions for q/q realized price gains are $5/ton in Q2, $25 in Q3 and $20 in Q4. On that basis, we are making est changes for the domestic c'board producers and adjusting our price targets...For PKG, we are raising our PT from $42 to $46, but downgrading from Buy to Hold. This report also offers a review of Q4 company financial performance & key industry indicators such as volumes, inventories, costs & pricing.”
Packaging Corporation of America closed on Friday at $43.08.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.