Graphic Packaging an under-appreciated franchise, says RW Baird Baird believes Graphic Packaging's announced secondary stock offering and simultaneous stock buyback program are a net positive for the shares. The firm also noted its improved liquidity and catalysts including M&A integration, geographic expansion an improving cash flow. Shares are Outperform rated with a $7 price target.
On The Fly: Analyst Upgrade Summary Today's noteworthy upgrades include: American Express (AXP) upgraded to Perform from Underperform at Oppenheimer... BankMutual (BKMU) upgraded to Outperform from Market Perform at Hovde Group... Black Hills (BKH) upgraded on acquisition at BMO Capital... Bruker (BRKR) upgraded to Buy from Hold at Cantor... Cedar Fair (FUN) upgraded to Conviction Buy from Buy at Goldman... Charles Schwab (SCHW) upgraded to Buy from Neutral at Nomura... Corporate Office Properties (OFC) upgraded to Buy from Neutral at Mizuho... Entegris (ENTG) upgraded on valuation, outlook at Pacific Crest... First Financial upgraded to Outperform from Market Perform at Keefe Bruyette... Goldman Sachs (GS) upgraded to Buy from Neutral at Nomura... Graphic Packaging (GPK) upgraded to Outperform from Neutral at Macquarie... Home Depot (HD) upgraded to Buy from Hold at Deutsche Bank... Intel (INTC) upgraded to Outperform from Neutral at Macquarie... J.B. Hunt (JBHT) upgraded to Buy from Hold at BB&T... Magna (MGA) upgraded to Buy from Neutral at Citi... Masco (MAS) upgraded to Buy from Hold at Evercore ISI... Mattel (MAT) upgraded to Conviction Buy from Buy at Goldman... O'Reilly Automotive (ORLY) upgraded to Buy from Hold at Deutsche Bank... PACCAR (PCAR) upgraded to Buy from Neutral at Citi... People's United (PBCT) upgraded to Neutral from Underweight at Piper Jaffray... Quality Systems (QSII) upgraded to Overweight from Neutral at Piper Jaffray... RadiSys (RSYS) upgraded to Buy from Hold at Needham... Standard Motor (SMP) upgraded to Buy from Neutral at CL King... Swedbank (SWDBY) upgraded to Hold from Underperform at Jefferies... Toll Brothers (TOL) upgraded to Strong Buy from Outperform at Raymond James... Voyager Therapeutics (VYGR) upgraded to Neutral from Sell at Chardan... Yahoo (YHOO) upgraded to Buy from Hold at Pivotal Research.
International Paper downgraded to Neutral from Buy at Citi Citi analyst Anthony Pettinari downgraded International Paper (IP) to Neutral after Paper Week reduced January kraftliner prices by 2.4% and corrugated medium prices by 3.7%. The price cuts were the first since 2008-2009, Pettinari tells investors in a research note. The analyst lowered his estimates for International Paper, Packaging Corp. (PKG) and WestRock (WRK) and downgraded both IP and Packaging Corp. to Neutral. He expects the stocks to trade lower today, potentially in the 4%-6% range. Pettinari cut his price target for International Paper shares to $38 from $45. The analyst said he'd not be surprised to see Graphic Packaging (GPK) trade down on the price cuts, even though the company does not produce containerboard. He recommends buying the stock on any pullback.