Graphic Packaging (NYSE:GPK) Price Target Raised to $11.50

Key Points

• UBS raised its Graphic Packaging price target from $9.50 to $11.50 but maintained a Neutral rating; the new target implies 2.17% downside from the previous close.
• Analyst opinions remain mixed: one Buy, eight Hold and three Sell ratings, with a MarketBeat average rating of “Reduce” and an average price target of $11.01.
• Quarterly EPS of $0.23 and revenue of $2.19 billion slightly exceeded estimates, but EPS fell from $0.58 a year earlier.

Graphic Packaging (NYSE:GPK - Get Free Report) had its target price boosted by analysts at UBS Group from $9.50 to $11.50 in a research note issued on Wednesday, Benzinga reports. The firm currently has a "neutral" rating on the industrial products company's stock. UBS Group's target price indicates a potential downside of 2.17% from the stock's previous close.

A number of other equities analysts have also weighed in on GPK. Royal Bank Of Canada upped their price objective on Graphic Packaging from $9.00 to $12.00 and gave the stock a "sector perform" rating in a research note on Wednesday. Citigroup decreased their target price on Graphic Packaging from $13.00 to $9.00 and set a "neutral" rating on the stock in a research note on Friday, October 2nd. Wells Fargo & Company lowered their price target on Graphic Packaging from $10.00 to $9.00 and set an "underweight" rating on the stock in a report on Monday, October 19th. JPMorgan Chase & Co. upped their price target on Graphic Packaging from $11.50 to $12.00 and gave the stock an "overweight" rating in a research note on Wednesday. Finally, Truist Financial set a $9.00 price objective on shares of Graphic Packaging in a report on Wednesday. One investment analyst has rated the stock with a Buy rating, eight have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $11.01.

Graphic Packaging Stock Performance

Shares of GPK stock traded up $0.45 during trading hours on Wednesday, reaching $11.76. 21,083,345 shares of the company traded hands, compared to its average volume of 6,768,150. Graphic Packaging has a 12-month low of $8.15 and a 12-month high of $17.22. The company has a debt-to-equity ratio of 1.58, a current ratio of 1.38 and a quick ratio of 0.60. The company has a market cap of $3.48 billion, a P/E ratio of 17.81 and a beta of 0.65. The firm has a 50-day moving average price of $9.42 and a 200 day moving average price of $10.68.

Graphic Packaging (NYSE:GPK - Get Free Report) last released its earnings results on Tuesday, November 3rd. The industrial products company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.01. Graphic Packaging had a net margin of 2.25% and a return on equity of 9.95%. The company had revenue of $2.19 billion during the quarter, compared to analyst estimates of $2.17 billion. During the same period in the prior year, the firm posted $0.58 EPS. The firm's quarterly revenue was up .1% compared to the same quarter last year. As a group, sell-side analysts predict that Graphic Packaging will post 0.69 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. State of Michigan Retirement System lifted its holdings in Graphic Packaging by 1.9% during the 1st quarter. State of Michigan Retirement System now owns 71,000 shares of the industrial products company's stock valued at $706,000 after buying an additional 1,300 shares in the last quarter. Bfsg LLC boosted its position in Graphic Packaging by 9.1% in the 3rd quarter. Bfsg LLC now owns 15,600 shares of the industrial products company's stock valued at $141,000 after buying an additional 1,300 shares during the period. MassMutual Private Wealth & Trust FSB grew its stake in Graphic Packaging by 39.3% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 5,202 shares of the industrial products company's stock worth $55,000 after acquiring an additional 1,468 shares in the last quarter. Parkside Financial Bank & Trust grew its stake in Graphic Packaging by 44.7% in the 2nd quarter. Parkside Financial Bank & Trust now owns 5,644 shares of the industrial products company's stock worth $60,000 after acquiring an additional 1,743 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund increased its position in shares of Graphic Packaging by 3.2% during the first quarter. Oregon Public Employees Retirement Fund now owns 60,544 shares of the industrial products company's stock worth $602,000 after acquiring an additional 1,900 shares during the period. 99.67% of the stock is currently owned by institutional investors.

Key Headlines Impacting Graphic Packaging

Here are the key news stories impacting Graphic Packaging this week:

• Positive Sentiment: JPMorgan raised its price target to $12 from $11.50 and kept an Overweight rating. RBC also lifted its target, to $12 from $9, while maintaining Sector Perform. Both targets suggest limited upside from the cited $11.76 share price. JPMorgan rating details RBC rating details
• Positive Sentiment: Third-quarter EPS of $0.23 narrowly beat the $0.22 consensus, and revenue of $2.19 billion topped estimates. Sales were slightly higher year over year, volumes rose 1%, and adjusted EBITDA margin improved sequentially for a second consecutive quarter—supporting the positive reaction to the report. Third-quarter results
• Positive Sentiment: Graphic Packaging and Combined Technologies are making the Boardio paperboard canister available to nutraceutical brands as a rigid-plastic alternative. The partnership could expand the company’s sustainable packaging offering, though the financial contribution is not yet specified. Boardio announcement
• Neutral Sentiment: CEO Robbert Rietbroek and Interim CFO Charles Lischer are scheduled to present at the Baird Global Industrial Conference on November 10. The webcast may provide investors with updates, but no new financial guidance was announced. Conference announcement
• Negative Sentiment: Despite the slight quarterly beat, EPS fell to $0.23 from $0.58 a year earlier, while net income was $22 million. This sharp year-over-year earnings decline and thin profitability may temper optimism around the results.
• Negative Sentiment: Truist reaffirmed its Hold rating but raised its target only to $10 from $9, implying downside from the cited share price and signaling valuation concerns. Truist rating details

Graphic Packaging Company Profile

Graphic Packaging Holding Company, through its subsidiary Graphic Packaging International, develops and manufactures fiber-based packaging products for consumer goods companies. Its offerings include paperboard folding cartons, beverage carriers, cups, foodservice packaging, and other packaging solutions designed for products sold in grocery, foodservice, beverage, and household markets.

The company serves brand owners and manufacturers across a range of end markets, including food, beverage, consumer packaged goods, and foodservice.

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