Packaging Corp. price target raised to $262 from $238 at Truist

Truist raised the firm’s price target on Packaging Corp. (PKG) to $262 from $238 and keeps a Buy rating on the shares. The firm is updating its model after the company completed the acquisition of Greif’s (GEF) containerboard assets, noting that it views the acquisition as positive as it provides Packaging with increased scale and adds capacity to its highly utilized system, affording it greater growth optionality over the next several years, the analyst tells investors in a research note. With strong cash flow from legacy assets and the GEF containerboard acquisition as well as lower capex, the company could be positioned to meaningfully increase its dividend sometime in the next few quarters, the firm added.