Goldman Sachs Initiates Coverage On Graphic Packaging Holding Company (GPK)

Goldman Sachs is initiating coverage on Graphic Packaging Holding Company GPK with a Buy rating and a $6.25 price target on shares. In a note to investors, Goldman Sachs writes, "We initiate coverage of Graphic Packaging (GPK), a leading North America based producer of paper based folding cartons for the beverage and food industries, with a Buy rating and 12-month $6.25 price target, which implies 17% upside potential. We would Buy GPK shares given its (1) exposure to consolidated boxboard/folding carton markets, where industry pricing is favorable, (2) low cost position and track record of significant productivity gains, (3) strong FCF profile and focus on debt reduction, and (4) potential for the multiple to expand, with GPK shares trading at 1.0X turn EV/EBITDA discount vs. peers on 2012 estimates." Shares of GPK gained 4 cents yesterday to close at $5.33, a gain of 0.76%.