GPK - Morgan Stanley turns cautious on Graphic Packaging Holding on guidance risk

Morgan Stanley moves to an Equal-weight rating on Graphic Packaging Holding (GPK) after having it slotted at Overweight. The firm sees limited upside in its base case on GPK and a more balanced risk-reward profile. "Despite a ~$29M headwind from winter storm Uri in 1Q21, GPK maintained its 2021 EBITDA guidance, implying a more back-half weighted year than initially anticipated. While still achievable given recent boxboard pricing increases and a ~6-month contractual lag, we see more downside than upside risk to guidance. Our revised 2021 EBITDA estimate of ~$1,110M is modestly below the midpoint of guidance of ~$1,120M," writes analyst Neel Kumar. Morgan Stanley assigns a price target on GPK of $20. Shares of GPK are up 2.05% premarket to $33.78. Graphic Packaging Holding missed on both lines of its FQ1 report last week.

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Morgan Stanley turns cautious on Graphic Packaging Holding on guidance risk