Gabrial Hajde, an analyst from Wells Fargo, maintained the Buy rating on Greif Class A (GEF – Research Report). The associated price target is $75.00.
Gabrial Hajde has given his Buy rating due to a combination of factors including Greif Class A’s positive volume growth in Asia-Pacific and Europe for their Global Industrial Packaging (GIP) sector, which indicates promising market expansion. This is coupled with the company’s decision to raise the lower end of its EBITDA guidance for the year 2024, reflecting a conservative yet optimistic financial outlook. Despite a slight miss in EBITDA for the first quarter, the company’s adjusted earnings per share were significantly higher than expected, suggesting strong underlying performance.
Additionally, Greif’s strategic moves, such as the IPACKCHEM acquisition and proactive price increases, have not been factored into their guidance, offering potential for upward revision in the future. The firm’s assumption of steady GIP volumes and a slight increase in Paper Packaging System (PPS) volumes due to rising cardboard demand further underpin the positive outlook. With these considerations, Hajde foresees a potential for a favorable stock reaction and recommends a Buy on the Greif Class A stock.
GEF’s price has also changed moderately for the past six months – from $72.420 to $60.960, which is a -15.82% drop .
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Greif Class A (GEF) Company Description:
Greif, Inc. engages in the production of industrial packaging products and services. It operates through the following segments: Rigid Industrial Packaging and Services, Paper Packaging and Services, Flexible Products and Services, and Land Management. The Rigid Industrial Packaging and Services segment involves the production and sale of rigid industrial packaging products, such as steel, fibre and plastic drums, rigid intermediate bulk containers, closure systems for industrial packaging products, transit protection products, water bottles and reconditioned containers, and services, such as container life cycle services, blending, filling and other packaging services, logistics and warehousing. The Paper Packaging and Services segment involves the production and sale of containerboard, corrugated sheets, corrugated containers and other corrugated products to customers in North America. The Flexible Products and Services segment involves the production and sale of flexible intermediate bulk containers and related services on a global basis and the sale of industrial and consumer shipping sacks and multiwall bag products in North America. The Land Management segment involves the management and sale of timber. This segment focuses on the active harvesting and regeneration of the company’s U.S. timber properties. The company was founded by William Greif and Albert Vanderwyst in 1877 and is headquartered in Delaware, OH.
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