Craig-Hallum analyst Greg Palm notes that Amazon (AMZN), which is Ranpak’s (PACK) largest direct customer, announced its intention to fully replace plastic packaging in North America with the removal of air pillows. This will directly benefit Ranpak — which supplies the alternative paper substrate — and should create urgency across the rest of e-commerce to make the change as well, the firm argues. While this move was something Craig-Hallum was expecting, commentary suggests the timeline was well ahead of expectations. As a result, it sees potential for a Q2 beat and is more confident in its second half of the year estimates. The firm has a Buy rating on Ranpak’s stock with a price target of $10. Shares of Ranpak have gained over 15% to $6.57 in morning trading following Amazon’s news.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on PACK: