Citi analyst Anthony Pettinari maintained a Hold rating on Packaging today and set a price target of $214.00.
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Anthony Pettinari has given his Hold rating due to a combination of factors influencing Packaging Corp of America’s market position. The company’s shares have remained relatively stable, reflecting a containerboard market that is sluggish but steady. Despite a slight increase in billings, the industry is not experiencing significant restocking benefits, as customers maintain low inventory levels. This has resulted in a flat price/mix year-over-year, with no immediate expectation of substantial growth.
Additionally, while there is anticipation of a price hike announcement by the end of the year for implementation in the first quarter of 2026, overall demand remains moderate. The recent acquisition of GEF assets is expected to increase PKG’s market share and recycled mix, but the overall impact is tempered by the broader market conditions. Consequently, Pettinari has adjusted the earnings estimate and target price to reflect these dynamics, leading to a Hold rating as the company navigates these challenges.
In another report released on July 10, Wells Fargo also reiterated a Hold rating on the stock with a $200.00 price target.