Packaging Corp Earnings: Resilient End Market Demand and Moderating Destocking Offset Lower Prices

No-moat-rated Packaging Corporation of America reported strong fourth-quarter results as the company finished the year on a high note. During the quarter, the company benefited from additional improvements in end market demand and continued easing in destocking activities that had weighed heavily on volumes for much of the year. Management noted that demand improved through the quarter and has carried over into January, which is an encouraging development given the challenges experienced in 2023. As such, we've raised our fair value estimate to $121 from $114 per share due to increased near-term revenue and profitability in our forecast.