Seeking Alpha

Packaging Corporation of America upgraded to Buy by Jefferies

  • Packaging Corporation of America (PKG +8.4%) shares continue to run as Jefferies upgrades the company to Buy from Hold and raises its PT to $70 from $49 with a bull-case scenario of $88.
  • Analyst Philip Ng believes the company's acquisition of Boise comes at an attractive multiple and called the deal "great."
Comments (1)
  • If that deal is great at forward P/E of 13.66, then KS is amazing at forward P/E of 11.39. Furthermore, KS has the advantage that their entire business is centered on hot growing products, such as corrugated and kraft paper. Part of BZ's business is in the dying newsprint and the not yet dying but definitely shrinking office paper.

     

    KS is still the best buy in the industry even after today's 10% growth. I think the market still cannot believe KS management has been so successful in the past couple of years.
    16 Sep 2013, 03:30 PM Reply Like
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