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 (NYSE:GPK) 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 (NYSE:GPK) and lowe ...

Company Overview - Graphic Packaging Holding Company is a leading provider of fiber-based packaging solutions, focusing on sustainable and innovative packaging for food, beverage, and consumer goods sectors [6] - The company has a market capitalization of $4.51 billion and reported revenue of $8.61 billion with a net income of $511 million for the trailing twelve months [4] Recent Developments - On January 16, Howard Capital Management Group sold its entire holding of 1,069,223 shares in Graphic Packaging, with an estimated transaction value of $20.92 million [2] - Following this transaction, Graphic Packaging comprised 1.32% of the fund's reportable 13F assets [3] Financial Performance - As of January 16, shares of Graphic Packaging were priced at $15.28, reflecting a decline of 43.51% over the past year, significantly underperforming the S&P 500 by approximately 60 percentage points [3] - In the third quarter, packaging volumes decreased by 2% year over year, with sales slipping 1% to $2.19 billion, and adjusted EBITDA fell 11% year over year due to pricing pressure and cost inflation [7] Market Position and Strategy - Graphic Packaging offers a diverse range of products including coated paperboard, folding cartons, cups, lids, and food containers, and also provides packaging machinery and support services [8] - The company serves a wide array of clients including consumer packaged goods companies, quick-service restaurants, and foodservice providers across multiple regions [8] Operational Challenges - The company is experiencing increased net leverage, which climbed to 3.9 times adjusted EBITDA from 3.0 times at the end of the previous year, attributed to heavy capital spending on long-term projects [9] - The current operational environment shows that consumer demand has stalled, leading to compressed margins and increased balance sheet risk [9]