Why Does Graphic Packaging Look So Attractive

Graphic Packaging (NYSE:GPK) is one of the 8 best paper and plastic packaging stocks to buy according to hedge funds.

On February 4, Ghansham Panjabi at Baird reduced his target price on Graphic Packaging from $18 to $15, leaving a revised upside potential of over 13%. The analyst maintained his Neutral rating on the stock, based on near-term challenges for the business.

On February 4, Truist Financial analyst Michael Roxland reaffirmed his Hold rating on Graphic Packaging and lowered the price target from $18 to $14. He based his rating on the recently announced fourth-quarter results, which showed meager volumes and pricing for the business. The company reported $0.29 in adjusted earnings per share (EPS) for the quarter.

Moreover, Roxland also shed light on management’s 2026 guidance. As per the forecasts provided, EBITDA is expected to be between $1.05 to $1.25 billion, and EPS is expected to range between $0.75 and $1.15 for 2026.

Graphic Packaging is a vertically integrated maker of fiber-based consumer packaging materials that are utilized within several segments, such as food & beverage, foodservice, and household products. The business is structured into 3 segments: Americas Paperboard Packaging, Europe Paperboard Packaging, and Paperboard Manufacturing. Some of its offerings include unbleached, bleached & recycled paperboard, cups, lids, food containers, and specialized packaging machines.

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This article is originally published at Insider Monkey.