Key Takeaways From Packaging Corp of America Analyst Ratings

Packaging Corporation of America -0.70%

Packaging Corporation of America




Ratings for Packaging Corp of America (NYSE:PKG) were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 1 2 0 0
Last 30D 1 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 1 2 0 0
3M Ago 0 0 0 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $190.75, a high estimate of $208.00, and a low estimate of $181.00. Observing a 4.09% increase, the current average has risen from the previous average price target of $183.25.

price target chart

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Packaging Corp of America by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Michael Roxland Truist Securities Raises Buy $208.00 $191.00
Anthony Pettinari Citigroup Lowers Neutral $181.00 $183.00
Gabe Hajde Wells Fargo Raises Overweight $191.00 $187.00
Anthony Pettinari Citigroup Raises Neutral $183.00 $172.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Packaging Corp of America. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Packaging Corp of America compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Packaging Corp of America's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Packaging Corp of America's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Packaging Corp of America analyst ratings.

Unveiling the Story Behind Packaging Corp of America

Packaging Corp of America is the third-largest containerboard and corrugated packaging manufacturer in the United States. It produces over 4.5 million tons of containerboard annually. The company's share of the domestic containerboard market is roughly 10%. The firm differentiates itself from larger competitors by focusing on smaller customers and operating with a high degree of flexibility.

Financial Insights: Packaging Corp of America

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Packaging Corp of America's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 0.16%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Packaging Corp of America's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.37% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Packaging Corp of America's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.63%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Packaging Corp of America's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.66%, the company showcases efficient use of assets and strong financial health.

Debt Management: Packaging Corp of America's debt-to-equity ratio is below the industry average at 0.78, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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