Truist Securities lifts Greif stock price target to $72 from $56

On Friday, Truist Securities analysts raised the price target for Greif Inc. (NYSE: NYSE:GEF) stock to $72 from $56, maintaining a Hold rating. The change comes after Greif reported second-quarter Class A operating earnings per share of $1.19, surpassing both Truist’s forecast of $1.05 and the Street’s estimate of $1.09. According to InvestingPro data, two analysts have recently revised their earnings estimates upward for the upcoming period, with price targets ranging from $56 to $93.

The company’s divisions, Customized Polymer Solutions and Integrated Solutions, outperformed expectations, while Durable Metal Solutions and Sustainable Fiber Solutions met projections. The ongoing Soterra timberland sales process is progressing well, with potential portfolio changes anticipated at the right price. With a market capitalization of $3.18 billion and trailing twelve-month revenue of $5.52 billion, Greif maintains strong operational metrics.

Greif’s stock rose approximately 15.6%, contrasting with a 0.5% decline in the S&P 500. The company updated its low-end fiscal 2025 EBITDA guidance to approximately $725 million, up from the previous $710 million. This increase reflects an additional $53 million of positive price cost and $40 million of lower volumes across various divisions.

Additionally, Greif raised its low-end free cash flow guidance to about $280 million from $245 million, attributed to improved EBITDA guidance, better working capital management, and more favorable cash tax and other costs. The guidance excludes any potential future demand shifts. Get access to Greif’s comprehensive financial health analysis and 8 additional exclusive ProTips through InvestingPro, including insights into its 53-year dividend payment history and future growth potential.

In other recent news, Greif Bros Corporation reported its second-quarter fiscal 2025 earnings, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $1.22, compared to the forecasted $1.12. Despite a slight revenue miss, with actual revenue at $1.39 billion against the expected $1.42 billion, the company raised its fiscal 2025 guidance for adjusted EBITDA to at least $725 million. The company also reported a year-over-year increase in adjusted EBITDA by $44 million, reaching $214 million, and a significant rise in adjusted free cash flow to $110 million from $59 million in the previous year. Greif Bros demonstrated robust performance, particularly in its Polymer and Fiber Solutions segments, which contributed to the improved financial results. The company is focused on strategic cost optimizations, including mill closures, which are expected to enhance long-term performance. Additionally, the company received recognition for its workplace environment and sustainability efforts, further solidifying its market position. Analyst firms have taken note of these developments, with some suggesting a potential upside in the company’s financial outlook.

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