PKG - Graphic Packaging and Greif are BofA's packaging stock standouts

Bank of America called Graphic Packaging Holdings (GPK +0.9%) its top pick in the containerboard sector and also posted a two-notch upgrade on Greif (GEF +4.5%) straight to Buy from Underperform. The firm said the paperboard cycle continues to see price inflation and the economy has exhibited more strength than expected. In reaction, BofA raised boxboard and containerboard forecasts across the board. GPK is said to be attractively priced with a 11% free cash flow yield and is noted as a sector quality standout . Meanwhile, Packaging Corporation of American (NYSE:PKG) is also maintained with a Buy rating on BofA's confidence in its performance. Greif (GEF), which has paperboard exposure through containerboard and boxboard, is seen as a more cyclical play but is also attractively priced versus peer stocks. Meanwhile, BofA kept Neutral ratings on International Paper (NYSE:IP) and WestRock (NYSE:WRK) on the view the sector is no longer early cycle

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Graphic Packaging and Greif are BofA's packaging stock standouts