Greif (NYSE:GEF)‘s stock had its “sell” rating reiterated by equities research analysts at KeyCorp in a research report issued on Tuesday. They presently have a $47.00 price objective on the industrial products company’s stock. KeyCorp’s target price points to a potential downside of 20.00% from the company’s previous close.
The analysts wrote, “Wednesday, Feb. 28. We are reducing our F1Q18 adj. EBITDA estimate on account of cost inflation, despite continued muted old corrugated container (OCC) costs. We are also reducing our FY18 adj. EBITDA estimate despite a potential substantial OCC benefit compared to its previous guidance. GEF’s FY18 adjusted EPS outlook should get a boost from a lower effective tax rate (thanks to the Tax Act), but we think the EBITDA outlook is less rosy. Key Investment Points Other than a lower tax rate, the one obvious benefit to GEF’s previous FY18 adj. Class A EPS guidance of $3.25-$3.55 should be lower OCC prices. GEF assumed index prices of $113/ton in November, December, and January before rising throughout the rest of its FY18 for an average OCC cost of $152/ton. Rather than rising in February, prices fell in the Southeast by $5/ton, and they’re likely to fall by another $5-10/ton in March.””
A number of other analysts also recently issued reports on GEF. Robert W. Baird reiterated a “buy” rating and issued a $66.00 price target on shares of Greif in a report on Friday, November 10th. BMO Capital Markets reissued a “hold” rating and issued a $55.00 price objective on shares of Greif in a research note on Friday, November 24th. Zacks Investment Research cut shares of Greif from a “hold” rating to a “sell” rating in a research note on Thursday, November 30th. Bank of America raised shares of Greif from a “neutral” rating to a “buy” rating and set a $70.00 price objective for the company in a research note on Tuesday, January 2nd. They noted that the move was a valuation call. Finally, DA Davidson raised shares of Greif from a “neutral” rating to a “buy” rating and set a $74.00 price objective for the company in a research note on Thursday, December 7th. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and six have assigned a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $64.00.
Greif (NYSE:GEF) last announced its quarterly earnings results on Wednesday, December 6th. The industrial products company reported $0.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.89 by $0.09. The company had revenue of $968.00 million for the quarter, compared to the consensus estimate of $931.96 million. Greif had a net margin of 3.26% and a return on equity of 17.06%. Greif’s revenue for the quarter was up 11.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.65 EPS. equities research analysts predict that Greif will post 3.4 earnings per share for the current year.
Several large investors have recently modified their holdings of the business. Two Sigma Investments LP grew its stake in shares of Greif by 1,828.5% in the 4th quarter. Two Sigma Investments LP now owns 212,853 shares of the industrial products company’s stock worth $12,895,000 after buying an additional 201,816 shares in the last quarter. AXA grew its stake in shares of Greif by 39.4% in the 4th quarter. AXA now owns 190,100 shares of the industrial products company’s stock worth $11,516,000 after buying an additional 53,700 shares in the last quarter. Alambic Investment Management L.P. grew its stake in shares of Greif by 20.2% in the 4th quarter. Alambic Investment Management L.P. now owns 187,311 shares of the industrial products company’s stock worth $11,347,000 after buying an additional 31,495 shares in the last quarter. Two Sigma Advisers LP grew its stake in shares of Greif by 71.3% in the 4th quarter. Two Sigma Advisers LP now owns 102,720 shares of the industrial products company’s stock worth $6,223,000 after buying an additional 42,756 shares in the last quarter. Finally, American Century Companies Inc. grew its stake in shares of Greif by 196.2% in the 4th quarter. American Century Companies Inc. now owns 86,530 shares of the industrial products company’s stock worth $5,242,000 after buying an additional 57,317 shares in the last quarter. 47.39% of the stock is owned by institutional investors and hedge funds.
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Greif Company Profile
Greif, Inc is a producer of industrial packaging products and services. The Company’s segments are Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services, and Land Management. The Rigid Industrial Packaging & Services segment is engaged in the production and sale of rigid industrial packaging products, and services, such as container life cycle management, filling, logistics, warehousing and other packaging services.
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