Fri, Sep. 23, 9:58 AM
- One day after Goldman Sachs initiated coverage on Packaging Corp. of America (NYSE:PKG) with a Sell, and two days after KapStone (NYSE:KS) replaced its CEO, the two are upgraded to Buy at Deustche Bank.
- PKG is higher by 1.5% and KS by 3% in today's session. The journey for the two this year, however, has diverged, with PKG up 29.7% and KS down 12.3%.
Thu, Sep. 22, 6:48 PM
- Weyerhauser (NYSE:WY) was today's biggest mover in the S&P 500, surging 5.7% in its biggest gain since February 2012, after Goldman Sachs initiated coverage with a Buy rating and adding it to the firm's Conviction List, citing its “leverage to the housing recovery.”
- Goldman says WY has the best timberland assets in the industry, and views WY as the only way for investors to get exposure to the attractive timberland asset class through a liquid, large-cap publicly traded equity.
- The firm expect continued timberland price appreciation to drive WY’s stock price higher, as the value of its land ownership comprises ~75% of the company's enterprise value.
- Elsewhere in the U.S. paper and forest products sector, Goldman also awards a Buy rating to Boise Cascade (NYSE:BCC) because of its strength in wood products; the firm rates International Paper (NYSE:IP), WestRock (NYSE:WRK), Domtar (NYSE:UFS) and Enviva Partners (NYSE:EVA) at Neutral, and Packaging Corp. of America (NYSE:PKG) as a Sell.
Thu, Sep. 22, 8:48 AM
- Packaging Corporation of America (NYSE:PKG) is on watch after Goldman Sachs issues a Sell rating on the paper/packaging stock after shares ran up 21% over the last month.
- The investment firm sets a price target of $77 on PKG.
Wed, Aug. 31, 5:11 PM
Thu, Aug. 25, 3:08 PM
- Paper stocks are higher on word that pricing will increase in the sector. The analysis is based off a look at October contracts.
- Buckingham Research is on top of the siutuation, already tweeting that it raised price targets on International Paper (IP +4.2%), Packaging Corp of America (PKG +2.7%), and WestRock (WRK +5.3%).
- KapStone Paper and Packaging (KS +6.4%) and Clearwater Paper (CLW +1.2%) also broke higher in afternoon trading.
Mon, Aug. 22, 8:42 AM
- Wells Fargo says paper packaging stocks could see some volatility after a dip in semi-chemical medium pricing.
- The investment firm thinks Packaging Corp of America (NYSE:PKG) looks attractive to pick up on any weakness due to its lighter exposure and positioning.
- On watch: Greif (NYSE:GEF), WestRock (NYSE:WRK), KapStone (NYSE:KS), International Paper (NYSE:IP).
Tue, Aug. 16, 9:42 AM
- Buckingham Research analyst Mark Weintraub says a data read suggests that containerboard producers pulled back on the throttle in July.
- The sector is moving higher in early trading: International Paper (IP +1.9%), WestRock (WRK +3%), KapStone Paper and Packaging (KS +1.7%), Packaging Corp of America (PKG +1%).
Fri, Jul. 22, 7:15 AM
- Deutsche Bank downgrades Packaging Corp. of America (NYSE:PKG) to a Hold rating after having the containerboard/packaging stock set at Buy.
- The firm trims its price target on Packaging Corp. to $75 from $73. Shares of PKG closed at $73.81 yesterday.
Wed, Jul. 20, 5:22 PM
Tue, Jul. 19, 5:35 PM
Wed, Jul. 6, 10:56 AM
- Packaging Corporation of America (PKG) entered into a definitive agreement to acquire substantially all the assets of TimBar Corporatio for $386M in cash. As per the agreement, the company will take over five corrugated products plants, two fulfillment centers and four design centers located primarily in the eastern and southeastern U.S.
- The acquisition will lead to growth of 2 lacs tons or 6% from its current level of 87% in container board integration level and will allow for further optimization and enhancement of mill capacity. The acquisition will be accretive to earnings immediately.
- PCA Chairman and CEO Mark Kowlzan said, “Following our successful integration of Boise, including the capacity we now have at the DeRidder, LA mill, this acquisition is an excellent fit, both geographically and strategically, with substantial benefits and synergies. TimBar is a well-capitalized company with a commitment to continuous improvement, innovation and safety in their operations. This, along with their customer focus, has allowed them to achieve excellent operating margins and consistent results. We look forward to working together to further enhance our strong balance sheet, financial results and cash flow consistent with our strategy to return significant value to our shareholders.”
- The company expects to complete the acquisition in the Q3 and expects to finance the transaction with a new term loan.
- Press Release
Wed, May 18, 5:09 PM
Tue, May 17, 10:18 AM
- Paper and packaging stocks are under heavy pressure in morning trading on some broad pricing and macroeconomic concerns.
- Decliners include WestRock (WRK -4.3%), International Paper (IP -3%), Packaging Corp of America (PKG -2.9%), KapStone Paper (KS -4.6%), UFP Technologies (UFPT -1.5%), Multi Packaging Solutions (MPSX -3.2%).
Mon, Apr. 25, 7:55 AM
- Argus upgrades Packaging Corporation of America(NYSE:PKG) to a Buy rating from Hold after digesting the paper company's Q1 report.
- A positive outlook from Packaging Corporation on improved pricing and the conversion of a newsprint facility factors into the ratings action.
- Argus sets a price target of $74 on PKG vs. Friday's close of $65.68 and the 52-week high of $73.60.
- Now read the Packaging Corporation of America earnings call transcript
Thu, Apr. 21, 3:43 PM
- The majority of corporate buybacks in recent years have been "purely an exercise in financial engineering with very little fundamental foundation,” says Ted Theodore, portfolio manager of the TrimTabs Float Shrink ETF (NYSEARCA:TTFS).
- There are exceptions though, and he points to those companies using free cash flow rather than debt to finance repurchases.
- Overall, he says, buybacks have had "some modest artificial positive effect" on stock prices. What about rate hikes? Those firms using debt to fund repurchases will suffer the most. As for his fund, it focuses on companies using free cash flow for buybacks, so bring on higher rates.
- Of his fund's holdings, cyclicals with large domestic exposure are favorites: Packaging Corp. of America (PKG +1.8%), Sealed Air (SEE -1.2%), and UPS (UPS -1.1%).
- Buyback ETFs: PKW, SYLD, TTFS, SPYB
Wed, Apr. 20, 5:02 PM