GPK - Graphic Packaging named 'Catalyst Call Buy idea' at Deutsche Bank

Graphic Packaging ( NYSE: GPK ) offers a strong buy opportunity ahead of its Q4 earnings release in February, according to Deutsche Bank.

The new “Catalyst Call” initiation at the bank explains that estimates are likely too low for 2023 due to the company’s price-cost dynamics that appear favorable. Full-year EBITDA forecasts are also expected to impress upon the report.

“Frankly, we were hesitant to make this call because we believed that buyside expectations were closer to our estimate already,” the team noted. “Granted, we felt this way last quarter too which led US to not initiate a catalyst call on the name and the stock was still up 7.5% on the day of earnings.”

While the bank’s analysts said that “fears of paperboard prices rolling over and the lack of further catalysts” have impacted sentiment, the team retained a Buy rating and initiated the opportunistic upside call.

Read more on the earnings estimates for the company ahead of the February 7 report .

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