
PKG Stock Forecast & Price Target
PKG Analyst Ratings
Bulls say
Packaging Corp of America (PCA) is experiencing strong operational performance, with bookings at its legacy plants increasing by over 11% and daily billings rising by 8%, positioning the company favorably in a competitive market. The company is set to benefit from a planned price increase of $70 per ton in March and is operating at full capacity with no economic downtime, reflecting a robust demand environment. Furthermore, PCA's recent acquisition of Greif's containerboard assets is expected to enhance its scale and operational efficiency, with ongoing improvements already yielding approximately 15% gains in operational efficiency, thus bolstering future growth prospects.
Bears say
The negative outlook for Packaging Corp of America (PCA) stems from several fundamental financial challenges, including a recent earnings per share (EPS) miss of $0.08 compared to guidance, attributed primarily to unfavorable volume and mix issues and downtime at a significant mill. The company faces deteriorating industry trends in both containerboard and uncoated freesheet segments, exacerbated by rising input cost volatility related to fiber, labor, energy, and freight. Additionally, the potential for increased leverage and poor execution on capital projects raises concerns about PCA's ability to manage costs effectively, which may ultimately impact future capital expenditures significantly.
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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