Packaging Corporation of America (PKG) Reports Strong Q1 2025 Earnings

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2 days ago
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  • Packaging Corporation of America (PKG, Financial) reports robust Q1 2025 earnings, exceeding last year's figures.
  • Analysts predict a 15.10% upside potential for PKG with an average price target of $213.54.
  • The company's stock is currently rated as "Outperform" according to a consensus of brokerage firms.

Packaging Corporation of America (PKG) has delivered impressive financial results for the first quarter of 2025. The company's net income reached $204 million, or $2.26 per share, a significant improvement over the $155 million, or $1.72 per share, recorded in Q1 2024. Net sales hit the $2.1 billion mark, with the packaging segment achieving an impressive EBITDA margin of 21%. Looking ahead, the company projects earnings of $2.41 per share for the second quarter.

Wall Street Analysts Forecast

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According to projections from eight analysts, Packaging Corp of America (PKG, Financial) is expected to reach an average price target of $213.54 over the next year. This projection represents an optimistic high of $255.00 and a cautious low of $148.34. Given the current pricing at $185.54, these estimates suggest a potential upside of 15.10%. Investors seeking deeper insights can visit the Packaging Corp of America (PKG) Forecast page.

The consensus recommendation from 10 brokerage firms positions Packaging Corp of America (PKG, Financial) with an average rating of 2.2, categorizing the stock in the "Outperform" bracket. This rating is part of a scale from 1 to 5, with 1 reflecting a Strong Buy and 5 indicating a Sell.

From the perspective of GuruFocus metrics, the estimated GF Value for Packaging Corp of America (PKG, Financial) stands at $182.19 in one year. This estimation suggests a slight downside of 1.8% from the current price of $185.535. The GF Value represents GuruFocus’s assessment of the stock's fair trading value, derived from historical trading multiples, past business growth, and future business performance estimates. For more detailed data, investors can explore the Packaging Corp of America (PKG) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.