Packaging Corp. Price Target Raised to $220 by Argus

Argus raised Packaging Corp.'s (PKG) price target to $220 from $210 and maintained a Buy rating, citing expectations for volume gains amid recovering demand and a recent acquisition. The firm's results are linked to trends in paper production and pricing, according to the analyst.

Packaging Corp. of America (PKG) has received a positive update from Argus Research, which raised its price target to $220 from $210 while maintaining a Buy rating. The analyst cited expectations for volume gains amidst recovering demand and a recent acquisition to support the positive outlook.

The company's shares opened today at $196.78, reflecting the analyst's bullish sentiment. Argus Research's Buy rating aligns with recent research from TR | OpenAI, which also issued a Buy recommendation on August 7. However, UBS maintained a Hold rating on July 29, suggesting a more cautious approach [1].

Packaging Corp. of America's second-quarter 2025 results, as reported in its Form 10-Q filing, highlighted robust financial performance. The company reported a net sales increase of 4.6% to $2,171.3 million, driven by higher prices and mix in containerboard and corrugated products. Gross profit rose by $45 million to $483.0 million, while income from operations increased by 20.9% to $333.7 million. Net income surged by $42.6 million to $241.5 million, and diluted EPS improved to $2.67 from $2.21 in the same period last year [2].

The analyst's optimism is also supported by recent institutional investment activity. CCM Investment Group LLC purchased 4,136 shares of PKG during the first quarter, valued at approximately $809,000. Clearstead Trust LLC and TCTC Holdings LLC also increased their stakes in the company. Analysts from Citigroup, Truist Financial, and Wells Fargo & Company have also revised their ratings and price targets, reflecting varying but generally positive outlooks on the company's prospects [3].

In addition to the analyst's assessment, Packaging Corp. of America's recent acquisition of Greif Inc.'s containerboard business for $1.8 billion is expected to enhance the company's integration of containerboard production into its corrugated products facilities. This acquisition, which is set to close by the end of Q3 2025, aligns with the analyst's expectations for volume gains in the Packaging segment.

While the company faces challenges such as higher operating and converting costs and increased freight and logistics expenses, the analyst remains optimistic about the company's ability to navigate these challenges and capitalize on the recovering demand for packaging products.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/PKG/pressreleases/34078381/argus-research-remains-a-buy-on-packaging-pkg/
[2] https://www.tradingview.com/news/tradingview:c089eae6d76db:0-packaging-corp-of-america-sec-10-q-report/
[3] https://www.marketbeat.com/instant-alerts/filing-ccm-investment-group-llc-takes-position-in-packaging-corporation-of-america-nysepkg-2025-08-11/