GPK - Graphic Packaging stock rallies after earnings topper
Graphic Packaging Holding Company ( NYSE: GPK ) shot up in early trading on Tuesday after sailing past consensus estimates with its Q3 earnings report.
GPK recorded organic sales growth of 5% supported by expansion into new market segments and geographies. Adjusted EBITDA came in at $441M vs. $284M a year ago, positively impacted by $172M in favorable price-cost relationship and $61M in volume/mix.
Looking ahead, Graphic Packaging ( GPK ) noted that the low-cost production platform positions the company to capture profitable growth.
Following the report, Bank of America reiterated a Buy rating and $25 price objective on GPK. Analyst George Staphos and team expect a positive reception from the market to the results for GPK with the organic revenue growth and conversions to paperboard packaging continuing to foster strong backlogs and price/cost dynamics, which is said to bode well for 2023 when some cost headwinds could fade.
Shares of GPK rose 3.21% in opening trades on Tuesday to $22.20 vs. the 52-week trading range of $17.63 to $24.07.
The Seeking Alpha Quant Rating on GPK is flashing Strong Buy.
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Graphic Packaging stock rallies after earnings topper