In a report released yesterday, George Staphos from Bank of America Securities maintained a Buy rating on Graphic Packaging (GPK – Research Report), with a price target of $32.00.
George Staphos has given his Buy rating due to a combination of factors that reflect positively on Graphic Packaging’s strategic initiatives and financial outlook. The company is in the process of closing its Middletown, Ohio facility as part of a previously announced consolidation plan, which aims to streamline operations by concentrating CRB capacity in Kalamazoo, Michigan and Waco, Texas. This move is expected to enhance efficiency and reduce costs, contributing to a stronger financial position.
Furthermore, Staphos highlights the potential for improved free cash flow trends in the second half of the year as capital expenditures decline. The company’s focus on innovation and sustainability, along with the anticipated benefits from the completion of the Waco project and share buybacks, are expected to positively impact earnings per share. These factors, combined with Graphic Packaging’s low-cost mill position, underpin the Buy rating and suggest a promising outlook for the stock.
GPK’s price has also changed moderately for the past six months – from $29.740 to $26.220, which is a -11.84% drop .