GPK - Graphic Packaging catches upgrade on defensive dynamics

Graphic Packaging Holdings Company (NYSE:GPK) is a top pick for defensively-minded investors, per BMO Capital Markets. The bank noted that the industry the company operates within is very defensive in its own right, with GPK being perhaps the most stable within that group. “Graphic produces a full array of cartonboard substrates, as well as downstream folding cartons/food service packaging,” BMO analyst Mark Wilde explained. “As a result, demand tends to be remarkably stable across the economic cycle and recession resistant.” He added that the trend of single-use plastic replacement provides a significant tailwind for the stock, bolstering downside protection and offering attractive upside. Further, with the stock trading at a relatively cheap multiple in his view, appreciation from this longer-term trend is not yet appreciated. Wilde raised his price target on the stock to $25 from $20 and upgraded his outlook on shares from a “Hold” equivalent to a “Buy”

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Graphic Packaging catches upgrade on defensive dynamics