BofA expects a flat earnings season for packaging and paper stocks, with some green shoots

Packaging of America

11/07/2024 18:33

** Bank of America provides mixed outlook for packaging and
paper stocks, on expectations of relatively flat earnings but
with some green shoots on the horizon
    ** Brokerage expects weaker valuations after a couple of
disappointing quarters, sequential volume improvement and better
price/cost ratio to drive better stock performance
    ** "Key food and beverage companies may be considering a
combined strategy of price cuts, promotion, and guidance resets
to enable stronger volumes," says brokerage, citing a potential
benefit for packaging and paper stocks
    ** Brokerage cuts PT for Packaging Corp of America  PKG.N 
to $195 from $200, Berry Global  BERY.N  to $72 from $81 and
Sealed Air  SEE.N  to $41 from $43, but highlights them as
potential buys

 (Reporting by Ananta Agarwal in Bengaluru)
 ((Ananta.Agarwal@thomsonreuters.com))