Greif (GEF) Stock Forecast & Price Target

Greif Inc. has demonstrated a proactive strategy by shifting towards less cyclical products and expanding into broader end-markets, which has contributed to its growth in higher EBITDA margin segments. The company has successfully improved its cash flow generation, targeting a conversion rate of approximately 50%, indicating strong operational efficiency. Furthermore, the volume increase in key segments, such as Integrated Solutions and Customized Polymer Solutions, highlights a positive trajectory in demand, particularly supported by strong performance in recycled fiber products.

Greif Inc. has experienced a decline in volumes across its segments, with Durable Metal Solutions and Sustainable Fiber Solutions reporting year-over-year decreases of 5.8% and 7.6%, respectively, attributed to sluggish demand in housing and petrochemicals, particularly in North America and EMEA. The company faces significant downside risks, including deteriorating supply and demand conditions in key industrial markets, increased volatility in input costs, and challenges in effectively managing pricing strategies. Additionally, concerns regarding weaker-than-expected capital return trends and exposure to international markets further amplify the negative outlook for Greif's stock.