Analyst Note
| Spencer Liberman |No-moat-rated Packaging Corp of America reported fourth-quarter results that were largely in line with our expectations. Demand for its corrugated packaging products continued to face pressure amid heightened economic uncertainty. That said, Packaging Corp’s stringent cost management and previously announced paper price increases partially offset lower volumes in the quarter. Consolidated operating margins contracted 280 basis points from a year ago to 14.6%, largely due to higher operating costs. We are maintaining our fair value estimate of $110 per share.