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%.
Aug. 28, 2014, 5:02 PM
Jul. 25, 2014, 11:42 AM
- A day after paper and containerboard shares rallied on talk of creating MLPs in the sector, Goldman Sachs says producers of virgin fiber based pulp and paper could meet the "qualifying income” criteria.
- The firm sees paper-based packaging companies, specifically exposed to virgin containerboard and boxboard, as the most suited to potentially consider moving to an MLP structure given highly consolidated market structures, significant exposure to stable food and beverage end-markets, and strong margin and free cash flow characteristics.
- Goldman's coverage of virgin paperboard producers include: IP (Buy), RKT (Buy), PKG (Neutral), GPK (Buy), and MWV (Neutral).
Jul. 24, 2014, 2:04 PM
- Paper and containerboard stocks are notably strong as Perry Capital comes out positive on the group, citing a PWC study regarding the potential for MLP conversion.
- Perry believes managements can create master limited partnerships for their paper mills to drive share upside potential of 50%-100%, the fund firm says in its Q2 letter.
- CLW +12.4%, KS +9.7%, RKT +8.9%, IP +5.3%, PKG +4.8%.
Jul. 21, 2014, 5:03 PM| Comment!
Jul. 20, 2014, 5:35 PM
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Apr. 22, 2014, 5:01 PM| 1 Comment
Apr. 22, 2014, 12:10 AM
Apr. 21, 2014, 5:35 PM
PKG vs. ETF Alternatives
Packaging Corp 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.
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