Graphic Packaging: 20-50% Upside Even After A Good Run

Summary

  • Q3 adjusted EPS of $0.34 beat estimates of $0.31.
  • Continued cost inflation on all fronts is offset by price increases.
  • AR Packaging deal is expected to close on November 1.
  • Company confident in "substantial adjusted EBITDA and cash flow growth in 2022"
  • Still think 25-50% upside even after the run.

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The Basics:

Graphic Packaging (NYSE:GPK) reported a solid quarter today (10/26). Net revenue grew 5%. The company called out $53 million of pricing improvements and $20 million of improved volume/mix as the main drivers for the growth.

This article was written by

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Cashfow Hunter has over 25 years of experience in the markets, with nearly 20 of them as a hedge fund portfolio manager. His experience investing in debt and equity markets gives him unique insights into markets. He successfully predicted the implosion of Silicon Valley Bank. He has degrees from Wharton and MIT.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of GPK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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