UPDATE: JP Morgan Upgrades Graphic Packaging to Overweight, Raises PT to $42

JP Morgan raises its rating on Graphic Packaging GPK to Overweight from Neutral and raises its price target to $6.50 from $5 to reflect the company's fairly stable boxboard end markets. JP Morgan says, "As input costs begin to level off, GPK should be able to recover prior inflation through pricing, leading to a better price/cost spread. When combined with continued productivity actions and its synergistic acquisition of DNK/Mid-America, we think cost savings will flow through more evidently to the bottom line, allowing GPK to return to its prior valuation premium of 10-15% (currently closer to an in line multiple despite ~10% value from NOLs)." GPK closed at $4.62 per share on Wednesday.