Craig-Hallum ups Ranpak target to $10 after ‘transformative-like’ Walmart deal

Craig-Hallum raised the firm’s price target on Ranpak (PACK) to $10 from $8 and keeps a Buy rating on the shares after the company announced a transformative-like deal with Walmart (WMT), significantly broadening its relationship, making it a preferred protective packaging vendor for this retail giant. Notably, the firm says that the agreement is significantly larger than what was expected and what it appears, based on the numbers provided in the 8K. Specifically, there is $100M in automation spend that Craig-Hallum expects will be recognized over a 10-year period but the actual revenue impact of that will be much larger, it adds. The firm believes the total size of this deal could me more like $700M-$800M vs. the $300M mentioned in the 8K. This agreement is a major validation for Ranpak and its broad-based protective packaging offering and should be a positive catalyst for the stock, Craig-Hallum argues.