UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Packaging Corp. of America Following 2Q Beat

In a report published Friday, Citigroup analyst Anthony Pettinari reiterated a Buy rating on Packaging Corp. of America PKG, and raised the price target from $58.00 to $62.00. In the report, Citigroup noted, “The convincing 2Q beat ($0.71 vs. $0.63 cons) showed PKG executing well on price and volume, and further catalysts (stepped-up return of cash, price upside, share gain) reinforce our non-consensus Buy rating. PKG is accelerating investments in its box plant system, pulling forward ~$25mm of high-return capital projects from next year to 2H'13. The projects should boost forward integration (~90% target integration vs. 87% in 2Q) and support continued share gain. Management indicated early July billings were up ~11% Y/Y, building on 2Q strength (shipments per workday +5.2%).” Packaging Corp. of America closed on Thursday at $52.57.