
PKG Stock Forecast & Price Target
PKG Analyst Ratings
Bulls say
Packaging Corp. of America has demonstrated a strong commitment to shareholder returns, notably enhancing its dividend by approximately 25% in 2Q22, following a 27% increase in 1Q21, reflecting a robust financial health. The recent acquisition of Greif’s containerboard assets is anticipated to boost the company's scale and capacity, providing significant growth opportunities in the coming years. Furthermore, the firm's dedicated focus on productivity improvements, efficiency enhancements, and cost reduction has led to market share gains and a strategic emphasis on high-margin, niche markets, underscoring its competitive positioning in the containerboard sector.
Bears say
The financial outlook for Packaging Corp of America appears negative, primarily due to deteriorating supply and demand trends in both containerboard and uncoated freesheet markets. The company faces increased risks from input cost volatility related to fiber, labor, energy, and freight, as well as challenges in managing these costs effectively. Additionally, rising leverage and poor execution on capital projects further exacerbate concerns about future profitability and investment capacity, with projected capital expenditures potentially declining significantly in the coming years.
This aggregate rating is based on analysts' research of Packaging Corp of America and is not a guaranteed prediction by Public.com or investment advice.
PKG Analyst Forecast & Price Prediction
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