Why Does Graphic Packaging Look So Attractive

Core Insights - Graphic Packaging (NYSE:GPK) is recognized as one of the top eight paper and plastic packaging stocks favored by hedge funds [1] - Analysts have recently adjusted their price targets for GPK, reflecting concerns about near-term challenges and performance [2][3] Analyst Ratings and Price Targets - Ghansham Panjabi from Baird reduced the target price from $18 to $15, indicating a revised upside potential of over 13% while maintaining a Neutral rating due to near-term business challenges [1] - Michael Roxland from Truist Financial reaffirmed a Hold rating and lowered the price target from $18 to $14, citing weak volumes and pricing in the recently announced fourth-quarter results, which reported adjusted earnings per share (EPS) of $0.29 [2][3] Future Guidance - Management's guidance for 2026 includes an expected EBITDA range of $1.05 to $1.25 billion and an EPS range of $0.75 to $1.15 [4] Company Overview - Graphic Packaging is a vertically integrated manufacturer of fiber-based consumer packaging materials, serving various segments such as food & beverage, foodservice, and household products [5] - The company operates in three segments: Americas Paperboard Packaging, Europe Paperboard Packaging, and Paperboard Manufacturing, offering products like unbleached, bleached & recycled paperboard, cups, lids, food containers, and specialized packaging machines [5]