GPK - Graphic Packaging lands bull rating from Truist off balance sheet confidence

Truist Securities begins initiate coverage of Graphic Packaging Holding Company (NYSE:GPK) on its expectation for greater free cash flow conversion and higher EBITDA. "GPK has been an active acquirer, expanding its presence in various boxboard substrates and gaining additional converting capacity to improve its integration level and drive EBITDA higher," notes analyst Michael Roxland. GPK is also seen pursuing greater opportunistic share repurchases given normalizing capex and recent pricing initiatives. Truist assigns a price target of $26 to GPK, which is 9X the estimated 2022 EV/EBITDA multiple. Earlier today, Graphic Packaging received regulatory approvals for the pending acquisition of AR Packaging.

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Graphic Packaging lands bull rating from Truist off balance sheet confidence