Packaging Corp. of America's (PKG) "unprecedented" containerboard price increase may be only partially realized, though it still supports higher 2026 and 2027 earnings estimates, UBS Securities said Wednesday in a report.
The price boost of $140 a ton effective Sept. 1 compares with typical adjustments of $50 to $70, and the third increase in six months is likely to face resistance from independent box manufacturers, the report said.
UBS raised its EPS estimates to $10.60 from $10.47 in 2026 and to $13.50 from $12.50 in 2027, assuming partial recognition of the September move. The pricing is expected to add $14 million to EBITDA in 2026 and $115 million to 2027.
UBS raised its price target on Packaging Corp. stock to $292 from $271 and maintained its buy rating.
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