Strong Financial Performance and Attractive Valuation Drive Buy Rating for Greif Class A

In a report released yesterday, George Staphos from Bank of America Securities maintained a Buy rating on Greif Class A (GEF – Research Report), with a price target of $65.00.

George Staphos has given his Buy rating due to a combination of factors, primarily the strong financial performance and improved outlook of Greif Class A. The company’s recent quarterly results exceeded expectations, particularly in the Customized Polymer Solutions and Sustainable Fiber Solutions segments, where adjusted EBITDA and margins were notably higher than anticipated. This strong performance indicates a positive trend in the company’s operations, which is further supported by the raised guidance for 2025.
Moreover, Greif has increased its low-end guidance for adjusted EBITDA and free cash flow for 2025, reflecting confidence in its future financial health. The company’s valuation is also attractive, with the current stock price below the price objective set by Bank of America Securities. These factors, combined with the potential for improving paperboard pricing trends, contribute to the Buy rating, suggesting that the stock is expected to perform well in the future.

In another report released on June 2, Wells Fargo also reiterated a Buy rating on the stock with a $67.00 price target.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GEF in relation to earlier this year.