In a report released yesterday, George Staphos from Bank of America Securities maintained a Buy rating on Packaging, with a price target of $240.00.
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George Staphos has given his Buy rating due to a combination of factors including Packaging Corp’s strategic decision to shut down its Wallula, WA mill No. 2 paper machine and kraft pulping facilities. This move is expected to reduce production costs significantly, enhancing profitability by approximately $35 million on the remaining capacity. The transition to recycled containerboard at the Wallula mill is also anticipated to improve cost efficiency and system flexibility, aligning with industry trends.
Furthermore, Packaging Corp plans to offset the capacity reduction with enhancements at other mills starting in the fourth quarter of 2026. These enhancements are projected to include additional capacity at the Jackson mill and improvements at the acquired Greif mills and the legacy Counce mill, which are expected to offer lower-cost production. The strategic adjustments are seen as a response to industry-wide capacity closures, positioning Packaging Corp to better navigate sluggish near-term demand dynamics while aiming for long-term growth.
In another report released on November 23, Seaport Global also reiterated a Buy rating on the stock with a $250.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PKG in relation to earlier this year.