$SLVM

Packaging, Forest Products Face Lackluster Demand, Weak Volumes, BofA Says

Packaging and forest products companies face lackluster demand and weak volumes outside beverage cans and selected specialty markets, BofA Securities analysts said in a Tuesday note.Analysts said that while inflation headwinds are expected to fade in the second half of the year, assuming a renewed ceasefire in the Middle East, foreign exchange could become an earnings risk.BofA said that beverage cans remain its preferred subsector, driven by stronger demand, improving aluminum economics, innovation, and the World Cup.Analysts said they are cautious on glass and paper, where volume weakness and potential operating-rate pressures could weigh on outlooks.BofA upgraded AptarGroup's (ATR) rating to buy from neutral, and raised its price objective to $173 from $148.It downgraded O-I Glass (OI) to underperform from buy, Greif (GEF) to underperform from neutral, and International Paper (IP) and Sylvamo (SLVM) to neutral from buy.BofA also resumed coverage of Graphic Packaging (GPK) with a neutral rating and a $12 price objective.Analysts increased the price objective on Ardagh Metal Packaging (AMBP) to $4.70 from $4; Amcor (AMCR) to $51 from $48; Avery Dennison (AVY) to $210 from $202; Ball (BALL) to $73 from $70; Crown (CCK) to $145 from $129; Karat Packaging (KRT) to $34 from $23; Silgan (SLGN) to $58 from $53; and Sonoco Products (SON) to $69 from $65.They also raised the price objective on Boise Cascade (BCC) to $81 from $80; Louisiana-Pacific (LPX) to $101 from $85; Packaging Corporation of America (PKG) to $263 from $242; and Greif to $70 from $68.BofA lowered its price objective on O-I Glass to $11 from $13, International Paper to $41 from $44, and Sylvamo to $45 from $58.Price: $128.79, Change: $+3.90, Percent Change: +3.12%

BofA Securities Downgrades Sylvamo to Neutral From Buy, Price Target is $45

Sylvamo Improving Into 2027 Despite Near-Term Cost Pressure, RBC Says

Sylvamo's (SLVM) earnings should improve into 2027 as price gains, fewer mill issues, North America investments, and cost-savings work to offset near-term cost pressure and market uncertainty, RBC Capital Markets said in a note Monday.The investment firm said it remains somewhat cautious because some price increases may not fully hold and paper imports could affect the North American market, while Sylvamo expects about $15 million in higher costs in Q2, though better pricing, fewer reliability problems, and the end of a prior Riverdale payment could help offset that pressure.US uncoated free sheet prices are moving higher and could rise further because of tight supply, while prices in Europe, Latin America, and export markets may also improve modestly, RBC said.RBC added 2026 looks like a transition year for Sylvamo, with investors likely to focus more on the company's path toward stronger 2027 results as the year moves forward.RBC kept its sector perform rating and cut its price target for Sylvamo to $49 from $50.Price: $41.43, Change: $+0.33, Percent Change: +0.80%