Greif (GEF) Stock Forecast & Price Target

Greif Inc. is strategically shifting its business focus towards less cyclical products and broader end-markets, which has allowed the company to enhance its growth in higher EBITDA margin segments while aiming for approximately 50% free cash flow conversion. In its Integrated Solutions segment, the company reported a year-over-year volume increase of 2.6%, driven largely by strong demand in recycled fiber, contributing positively to its financial performance. Additionally, the Customized Polymer Solutions segment experienced a volume growth of 2.2% year-over-year, indicating resilience despite minor declines in larger container categories.

Greif Inc. has reported a significant decline in volumes across its business segments, with a 5.8% year-over-year reduction in Durable Metal Solutions and a notable 7.6% decline in Sustainable Fiber Solutions, indicating weak market demand, particularly in North America and EMEA. The company faces multiple downside risks, including deteriorating supply and demand conditions within the paper, packaging, and industrial markets, as well as increased volatility in input costs such as fiber, metals, and labor. Additionally, challenges in managing these costs, along with weaker-than-expected capital returns and unfavorable capital structure initiatives, contribute to a negative outlook for Greif’s stock performance.