UBS last night upgraded Packaging Corp. (PKG) to Buy from Neutral with a price target of $248, up from $232. The firm expects the $50 per ton June price hike “to stick” amid improving demand and tight supply. High utilization and prior capacity cuts support Packaging ‘s pricing power, potentially adding $290M in annualized EBITDA, with half coming in 2026, the analyst tells investors in a research note. UBS says Packaging Corp. has zero exposure to the “more fragmented” European market and a long history of volume and margin outperformance versus the industry.
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