Greif (GEF) Stock Forecast & Price Target

Greif Inc. has strategically shifted its business mix towards less cyclical products and markets while focusing on higher EBITDA margin segments, which supports a positive cash flow generation outlook, targeting approximately 50% free cash flow conversion. The company has demonstrated growth in its Integrated Solutions segment, with a year-over-year volume increase of 2.6% primarily driven by strong demand for recycled fiber. Additionally, the Customized Polymer Solutions segment also reported a 2.2% year-over-year volume increase, reflecting resilience despite some declines in larger product categories.

Greif Inc. is experiencing significant volume declines across its segments, with a 5.8% year-over-year drop in Durable Metal Solutions attributed to sluggish demand in North America and EMEA, and a 7.6% decline in Sustainable Fiber Solutions due to challenging market conditions. The company faces multiple downside risks, including deteriorating supply and demand dynamics in its key markets, increased volatility in input costs for essential materials, and concerns about its ability to manage these costs effectively. Additionally, weaker-than-anticipated capital returns and exposure to international markets may further impact the company's financial performance and outlook.