Deep Dive Into Packaging Corp of America Stock: Analyst Perspectives (5 Ratings)

Analysts' ratings for Packaging Corp of America PKG over the last quarter vary from bullish to bearish, as provided by 5 analysts.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have recently evaluated Packaging Corp of America and provided 12-month price targets. The average target is $240.6, accompanied by a high estimate of $253.00 and a low estimate of $221.00. Observing a 8.38% increase, the current average has risen from the previous average price target of $222.00.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Packaging Corp of America. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Packaging Corp of America. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Packaging Corp of America compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Packaging Corp of America's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Packaging Corp of America's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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

Get to Know Packaging Corp of America Better

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.

Understanding the Numbers: Packaging Corp of America's Finances

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 displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 6.31%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Materials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Packaging Corp of America's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 9.52%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Packaging Corp of America's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.84%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Packaging Corp of America's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 2.21%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.77.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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