What Analysts Are Saying About Packaging Corp of America Stock

In the last three months, 7 analysts have published ratings on Packaging Corp of America PKG, offering a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $234.29, a high estimate of $265.00, and a low estimate of $205.00. Observing a downward trend, the current average is 5.21% lower than the prior average price target of $247.17.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Packaging Corp of America among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Michael Roxland |Truist Securities |Lowers |Buy | $237.00|$238.00 | |Gabe Hajde |Wells Fargo |Lowers |Overweight | $205.00|$209.00 | |Michael Roxland |Truist Securities |Lowers |Buy | $238.00|$265.00 | |Gabe Hajde |Wells Fargo |Lowers |Overweight | $209.00|$236.00 | |Mark Weintraub |Seaport Global |Announces |Buy | $250.00|- | |Michael Roxland |Truist Securities |Lowers |Buy | $265.00|$282.00 | |Gabe Hajde |Wells Fargo |Lowers |Overweight | $236.00|$253.00 |

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Packaging Corp of America. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Packaging Corp of America compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Packaging Corp of America's stock. This analysis 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.

About Packaging Corp of America

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.

Packaging Corp of America's Financial Performance

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Packaging Corp of America's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 10.74%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 10.23%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Packaging Corp of America's ROE excels beyond industry benchmarks, reaching 5.07%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Packaging Corp of America's ROA stands out, surpassing industry averages. With an impressive ROA of 2.5%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Packaging Corp of America's debt-to-equity ratio is below the industry average. With a ratio of 0.63, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and 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.