CCK - Graphic Packaging stands out in BofA's ratings refresh of the paper/packaging sector
Bank of America digs into the paper and packaging sector ahead of the earnings season. The firm lifts forecasts for containerboard and now assumes that $50 per ton is announced in the first portion of Q1 of 2022 and implemented in Q2. BofA recently increased paper price forecasts and lowered pulp forecasts. Looking at the stocks in the sector, BofA sees higher prices in 2022 as a positive for stocks like Weyerhaeuser Company (WY +0.9%) and Louisiana-Pacific (LPX +0.1%). Both of those stocks are rated Buy, along with Berry (BERY +1.0%), Crown (CCK +1.8%) and International Paper (IP +0.7%). Meanwhile, Graphic Packaging (GPK +2.3%) is slotted as top overall pick looking out 12 months and is a new addition to BofA's US 1 list. The outlook is less favorable on Sonoco (SON +0.1%), which is cut to a Neutral rating to Underperform with only modest upside seen. Downward earnings pressure
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Graphic Packaging stands out in BofA's ratings refresh of the paper/packaging sector