Wed, Jan. 28, 9:05 AM
- D.A. Davidson upgrades Packaging Corp. of America (NYSE:PKG) to a Buy rating from Neutral on what it sees as an overreaction to the firm's Q1 guidance.
- The investment firm sets a $90 price target on shares.
- It's been a volatile week for the paper/containerboard sector after Rock-Tenn and MeadWestvaco announced their merger on Monday.
- PKG +2.5% premarket to $78.20.
Tue, Jan. 27, 1:20 PM
- Shares of Packaging Corp. of America (PKG -8%) decline after the company missed slightly with its Q4 report and issued disappointing guidance.
- Several sector peers are also lower: KapStone Paper & Packaging (NYSE:KS) -4.7%, Rock-Tenn (NYSE:RKT) -1.6%, International Paper (NYSE:IP) -1.3%.
- Yesterday, the sector was all smiles off M&A buzz.
Mon, Jan. 26, 6:51 PM
- Packaging Corp. of America's (NYSE:PKG) Q4 revenue rose 13% to a record $1.43B as its Boise acquisition helped boost shipments of corrugated products, but shares -7% AH as earnings and revenue missed estimates.
- PKG also issues downside guidance for Q1, seeing EPS of $1.07-$1.10 vs. $1.25 analyst consensus estimate, as it anticipates lost containerboard production of ~60K tons, higher operating costs from annual maintenance downtime at its two largest containerboard mills, and two fewer production days than in Q4.
- Q4 packaging sales rose 8.8% Y/Y to $1.12B, while shipments of corrugated products grew 5.4% and jumped 11% when including Boise.
- Containerboard production totaled 927K tons vs. 803K tons in the year-ago period and 858K in Q3, as the latest quarter included 58K tons produced on a machine converted to containerboard production from at its DeRidder, La., operation.
Mon, Jan. 26, 5:36 PM
Mon, Jan. 26, 5:16 PM
Mon, Jan. 26, 9:52 AM
- A mega-merger in the paper industry between Rock-Tenn and MeadWestvaco has lifted other names in the sector fighting a tough tape.
- The delicate balance of pricing in the containerboard/packaging/paper sector is viewed as more stable with two giants combining.
- Advancers: Packaging Corp. of America (NYSE:PKG) +1.4%, International Paper (NYSE:IP) +0.7%, KapStone Paper and Packaging (NYSE:KS) +2.8%, Clearwater Paper (NYSE:CLW) +0.2%, Wausau Paper (NYSE:WPP) +0.1%, Orchids Paper Products (NYSEMKT:TIS) +0.3%.
- Previously: Rock-Tenn and MeadWestvaco up on paper
- Previously: Rock-Tenn and MeadWestvaco to merge
Sun, Jan. 25, 5:35 PM
Dec. 9, 2014, 5:14 PM
Dec. 9, 2014, 10:08 AM
Nov. 10, 2014, 9:44 AM
- Goldman Sachs says it is building in an MLP premium into its share price targets for containerboard stocks it covers, to reflect recent commentary from International Paper (IP -0.1%), Rock-Tenn (RKT -0.1%) and Packaging Corp. of America (PKG +0.1%).
- The firm maintains a Buy rating on International Paper and raises its price target to $60 from $51, RockTenn is maintained at Buy with a $63 price target from $52, and Neutral-rated Packaging Corp.'s price target is raised to $80 from $69.
- Goldman says its revised price targets imply an average 13% upside for IP, RKT and PKG, as it estimates that ~60%, 60%, and 85% of total company EBITDA could qualify for MLP status under current IRS guidelines.
Oct. 20, 2014, 6:26 PM
- Packaging Corp's (NYSE:PKG) segment revenue - Packaging $1.18B (39.6% Y/Y); Paper $312.5M.
- Segment income - Packaging $164.7M (6.3% Y/Y); Paper $43M.
- Q4 EPS guidance of $1.16 in-line with consensus.
- QCC at 10 ET tomorrow. Webcast here
- Shares -0.6% AH.
- Previously: Packaging Corporation Of America EPS in-line, beats on revenue
Oct. 20, 2014, 5:04 PM| Comment!
Oct. 19, 2014, 5:35 PM
Oct. 7, 2014, 5:53 PM
- International Paper (NYSE:IP) and Rock-Tenn (NYSE:RKT) were upgraded today to Buy from Neutral, and Packaging Corp. of America (NYSE:PKG) is reiterated with a Buy rating, at BofA/Merrill, which says it is increasingly convinced the companies will attempt to convert a portion of their businesses to MLPs, echoing a theme heard elsewhere in recent weeks (I, II).
- The firm estimates a conservative 20%-30% upside potential in the shares through a conversion, with the most upside probably coming from RKT (~28%) followed by PKG (~25%) and IP (~22%).
- PKG offers the best fundamental outlook among containerboard names, the firm says, reaffirming it as its top pick in the space.
Oct. 4, 2014, 8:25 AM
- International Paper (NYSE:IP), Packaging Corp. of America (NYSE:PKG) and Rock-Tenn (NYSE:RKT) all posted solid gains yesterday after Jefferies analyst Philip Ng wrote of a "high likelihood" that one of the containerboard producers would create an MLP structure over the next 6-12 months.
- Ng wrote that creating MLPs that would contain many of their company's mills could produce 30%-50% gains in the three stocks.
- While there is still a moratorium on private-letter rulings from the IRS, Ng says he has "heard chatter" it could be lifted as soon as this fall.
Sep. 11, 2014, 11:05 AM
- Presenting at the UBS Global Paper and Forest Products Conference this morning, International Paper (IP +2.5%) management says it's moved from a study phase on possible conversion to an MLP structure to a "more serious evaluation phase."
- At the same conference, KapStone (KS +2%) says it's taking a look at the MLP idea as well.
- Others in the industry also have their tails in the air: Rock-Tenn (RKT +2.2%), Packaging Corp. (PKG +1.3%), MeadWestvaco (MWV +1.9%).
- International Paper Tuesday night boosted its quarterly payout by 14% to $0.40 per share. The dividend is payable on Dec. 15 to holders of record on Nov. 17. The annualized yield is 3.2%.
PKG vs. ETF Alternatives
Packaging Corporation of America is a producer of container board and corrugated products in the United States. The Company also produces multi-color boxes and displays, as well as meat boxes and wax-coated boxes for the agricultural industry.
Other News & PR