Stock of the Day - January 13, 2020

Packaging Corporation of America (PKG)

$233.11

-$0.93 (-0.4%)

Market Cap: $20.85B

About Packaging Corporation of America

Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers.

The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers. The Corporate and Other segment focuses on transportation assets, such as rail cars, and trucks. The company was founded in 1959 and is headquartered in Lake Forest, IL.

Today's Trend

Packaging Corporation of America (NYSE: PKG) shares are being supported by a wave of bullish analyst commentary ahead of the company’s upcoming quarterly report, even as one earnings preview warns results could come in lower than last year.

Truist Financial raised its price target on Packaging Corporation of America to $270 from $258 and reiterated a buy rating, implying meaningful upside from current levels. Benzinga report on Truist target increase
Bank of America also lifted its price target to $263 from $242 and maintained a buy rating, reinforcing optimism about PKG’s valuation and earnings outlook. Benzinga report on Bank of America target increase
Multiple articles note that Packaging Corporation of America is scheduled to report quarterly earnings on Wednesday, keeping investors focused on the company’s near-term results and guidance. Packaging Corporation of America (PKG) Projected to Post Quarterly Earnings on Wednesday
An earnings preview from Zacks says PKG is not set up for a likely earnings beat and expects Q2 earnings to decline, which could temper enthusiasm if the report falls short of expectations. Earnings Preview: Packaging Corp. (PKG) Q2 Earnings Expected to Decline
Separately, analyst coverage remains generally constructive, with Packaging Corporation of America carrying an average recommendation of Moderate Buy. Packaging Corporation of America (NYSE:PKG) Given Average Recommendation of "Moderate Buy" by Analysts

Overall, PKG appears to be trading higher on analyst price-target increases and broadly positive ratings, while the upcoming earnings release remains the main near-term risk for the stock.

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