Packaging Corp, Greif gain on deal for containerboard unit sale

Packaging of America

01/07/2025 15:31

** Packaging Corp of America shares PKG.N up 4.3% on deal to buy Greif's GEF.N containerboard business for $1.8 bln in cash

** Greif shares up ~3%, adding to a ~16% surge in early June after Q2 results

** PKG currently above $195, reclaiming its 100-day moving avg for first time since Jan 29

** Still, PKG is down 13.5% YTD, third-biggest decliner on S&P 1500 containers and packaging index .SPCOMCOP

** GEF up almost 10% YTD, third-highest gainer on 14-member index

** GEF's Forward PE of 13.5 makes it the seventh-most expensive stock on the container index, but PKG PE of ~17.5 is second-highest

** Analysts avg rating on PKG is "hold", and "buy" on GEF -LSEG data

 (Reporting by Rupali Chaudhary in Bengaluru)

 ((Rupali.Chaudhary@thomsonreuters.com))