What 6 Analyst Ratings Have To Say About Packaging Corp of America

Packaging Corp of America PKG underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $203.83, with a high estimate of $219.00 and a low estimate of $187.00. Witnessing a positive shift, the current average has risen by 3.38% from the previous average price target of $197.17.

Analyzing Analyst Ratings: A Detailed Breakdown

The analysis of recent analyst actions sheds light on the perception of Packaging Corp of America by financial experts. The following summary presents 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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Packaging Corp of America compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Packaging Corp of America's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Packaging Corp of America's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with 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.

Packaging Corp of America's Financial Performance

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Packaging Corp of America's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 0.16%. This indicates a substantial 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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.37% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Packaging Corp of America's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.63%, the company may face hurdles in generating optimal returns for shareholders.

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 1.66%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.78.

Analyst Ratings: What Are They?

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.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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