Ranpak Holdings Analysts Increase Their Forecasts Following Q4 Results

Ranpak Holdings Corp. PACK reported better-than-expected fourth-quarter revenue results on Monday.

Ranpak Hldgs posted GAAP loss of 11 cents per share, compared to market expectations for a loss of 3 cents per share. The company’s sales came in at $90.400 million versus estimates of $87.042 million, according to data from Benzinga Pro.

Omar Asali, Chairman and Chief Executive Officer, commented, “We are pleased with our fourth quarter results as Ranpak finished the year on a positive note and built on the volume improvement momentum which began in the third quarter of 2023. Net revenue for the quarter increased 10.3% year over year on a constant currency basis to $93.9 million, driven by growth in both North America and Europe/APAC. We saw continued general improvement in the operating environment in Europe in the quarter and a more pronounced e-Commerce holiday season uptick in North America. Volumes overall increased 10% compared to the prior year and finished positive for the year after a slower start. In addition to our improved top-line performance, we experienced our most profitable quarter of the year as better volumes and more favorable input costs drove an Adjusted EBITDA increase of 89.1% to $24.4 million on a constant currency basis.”

Ranpak Holdings said it sees 2024 net revenue growth in the area of 6% to 12% and AEBITDA growth of 5% to 16% on constant currency basis.

Ranpak Hldgs shares jumped 42.8% to trade at $6.24 on Tuesday.

These analysts made changes to their price targets on Ranpak Holdings after the company reported quarterly results.

• Baird raised the price target on Ranpak Holdings from $5 to $7. Baird analyst Ghansham Panjabi maintained an Outperform rating.
• TD Cowen increased the price target on Ranpak Holdings from $8 to $11. TD Cowen analyst Tara Bancroft maintained a Market Perform rating.

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