Packaging Corp. linerboard price hike news ‘somewhat surprising,’ says Jefferies

Jefferies confirmed with Packaging Corp. that they have informed customers that the company is implementing a $70/ton kraft linerboard and $100/ton for corrugated medium price increase effective Jan 1, 2024. The pricing news is “somewhat surprising” with RISI just lowering prices by $20/ton in November, says the analyst, who argues “it won’t be easy for this increase to stick” with operating rates at 89% and inventory at 4.1 weeks of supply in September, as well as the seasonally slower time of the year. Jefferies has a Hold rating and $140 price target on Packaging Corp. shares.