Goldman Sachs Rates Graphic Packaging Holding Buy

According to Goldman Sachs, Graphic Packaging Holding GPK reported 2Q2011 EPS of $0.09 (ex. items), shy of the $0.11 estimate and consensus of $0.10. Goldman Sachs said that GPK's adjusted 2Q2011 EBITDA was $150.1 mn, up 3.4% yoy but below our $160.6 mn estimate, with the downside stemming from higher cost inflation and modestly less productivity gains than we forecast, which more than offset robust boxboard/folding carton prices. “We trim our 12-month price target to $6.25 from $6.50, given our modestly lowered EPS outlook. Our 12-month price target is based on our 2012 EBITDA estimate and 6.3X forward multiple.” Graphic Packaging Holding closed on Friday at $4.95.