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UPDATE: BMO Capital Markets Downgrades Packaging Corp. of America Following Company EPS Guidance Report

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In a report published Wednesday, BMO Capital Markets analyst Stephen Atkinson downgraded Packaging Corp. of America (NYSE: PKG) from Outperform to Market Perform, but raised the price target from $50.00 to $55.00.

In the report, BMO Capital Markets noted, “Company EPS guidance for Q3/13 is $0.88 compared to the Mean of $0.87 and our previous forecast of $0.90. The guidance implies that $25/ton of the $50/ton containerboard price increase will be implemented in Q3/13. Our linerboard list price forecast is $663/ton for 2013 and $700/ton for 2014. Packaging Corp's EPS sensitivity to a $50/ton price change is $0.87. Since Jan.1/2013, European kraft linerboard prices have increased by $15/ton to $713/ton while the recycled grade increased by $22/ton to $533/ton. Chinese recycled linerboard markets are exceptionally weak with new capacity forcing closures of older mills. Chinese recycled linerboard prices are about 10% below European levels and 30% below North American levels.”

Packaging Corp. of America closed on Tuesday at $51.49.

Latest Ratings for PKG

DateFirmActionFromTo
Jan 2021UBSInitiates Coverage OnSell
Jan 2021Morgan StanleyMaintainsEqual-Weight
Jan 2021BMO CapitalDowngradesOutperformMarket Perform

View More Analyst Ratings for PKG
View the Latest Analyst Ratings

 

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Posted-In: BMO Capital Markets Stephen AtkinsonAnalyst Color Downgrades Analyst Ratings

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