Demystifying Packaging Corp of America: Insights From 6 Analyst Reviews

6 analysts have shared their evaluations of Packaging Corp of America PKG during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $247.17, a high estimate of $280.00, and a low estimate of $221.00. Witnessing a positive shift, the current average has risen by 11.93% from the previous average price target of $220.83.

Analyzing Analyst Ratings: A Detailed Breakdown

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: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Packaging Corp of America. This information offers a snapshot of how analysts perceive 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: Understanding forecasts, analysts offer estimates for Packaging Corp of America's future value. Examining the current and prior targets provides insight into analysts' changing 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.

Discovering Packaging Corp of America: A Closer Look

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%. PCA 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: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Positive Revenue Trend: Examining Packaging Corp of America's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.73% as of 30 September, 2024, showcasing a substantial increase in 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 10.83% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Packaging Corp of America's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.64%, the company showcases efficient use of equity capital and strong financial health.

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 2.67%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.65, Packaging Corp of America adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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