Packaging Corp. of America Stock Rating Reaffirmed by Bank of America Corp. (PKG)
Packaging Corp. of America (NYSE:PKG)‘s stock had its “buy” rating reaffirmed by investment analysts at Bank of America Corp. in a note issued to investors on Tuesday, American Banking and Market News reports. They currently have a $66.00 target price on the stock, up from their previous target price of $61.00. Bank of America Corp.’s target price suggests a potential upside of 9.22% from the company’s current price.
The analysts wrote, “Packaging Corp. announced that it has entered into a definitive merger agreement with Boise Inc. (BZ; not covered) in which PKG will acquire BZ for $12.55/share in cash plus the assumption of $714mn in BZ debt as of June 30, 2013. Including all other long-term liabilities (about $380mn), this equates to about 8.0x EBITDA on a LTM basis, before synergies, below peer multiples.”
A number of other analysts have also recently weighed in on PKG. Analysts at Jefferies Group cut their price target on shares of Packaging Corp. of America (NYSE:PKG) to $68.00 in a research note to investors on Tuesday. They now have a “hold” rating on the stock. Finally, analysts at Wells Fargo & Co. initiated coverage on shares of Packaging Corp. of America (NYSE:PKG) in a research note to investors on Wednesday, September 11th. They set a “market perform” rating on the stock.
One analyst has rated the stock with a sell rating, ten have given a hold rating and two have issued a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $53.31.
Packaging Corp. of America (NYSE:PKG) traded down 0.50% during mid-day trading on Tuesday, hitting $60.125. The stock had a trading volume of 829,578 shares. Packaging Corp. of America has a 1-year low of $31.93 and a 1-year high of $60.45. The stock has a 50-day moving average of $54.18 and a 200-day moving average of $49.15. The company has a market cap of $5.818 billion and a price-to-earnings ratio of 26.16.
Packaging Corp. of America (NYSE:PKG) last posted its quarterly earnings results on Tuesday, July 16th. The company reported $0.71 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.63 by $0.08. The company had revenue of $800.20 million for the quarter, compared to the consensus estimate of $769.41 million. During the same quarter in the previous year, the company posted $0.49 earnings per share. The company’s revenue for the quarter was up 12.3% on a year-over-year basis. Analysts expect that Packaging Corp. of America will post $3.05 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Tuesday, October 15th. Investors of record on Friday, September 13th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 2.65%. The ex-dividend date of this dividend is Wednesday, September 11th.
Packaging Corporation of America is a producer of containerboard in the United States. The Company’s corrugated products manufacturing plants produce a variety of corrugated packaging products, including conventional shipping containers used to protect and transport manufactured goods, multi-color boxes and displays.
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