GEF - Greif slips after Wells Fargo turns cautious with catalysts seen played out

Wells Fargo lowers its rating on Greif (NYSE:GEF) to Equal Weight from Overweight. The firm notes the recent outperformance for Greif (GEF) in relation to the broad market and position itself on the sidelines ahead of the company's earnings report. Analyst Gabe Hajde: "We are moving to the sidelines as catalysts from the Caraustar integration, constructive boxboard cycle, operational improvements, and de-leveraging have played out. Specifically, on the GIPs side, EBITDA margins have moved ~300bp higher since FY2019; though comparables are set to become challenging heading into FY2022. For PPS, we believe investors are fixated on a perceived risk of price erosion. Lastly, despite a much improved leverage profile and an ability to repurchase shares, we think investors may see a lack of catalysts as a reason not to buy the stock at current level." Shares of Greif (GEF) are down 0.81% in premarket trading. Wells Fargo assigns a price

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Greif slips after Wells Fargo turns cautious with catalysts seen played out