Greif (GEF) Stock Forecast & Price Target

Greif Inc. has demonstrated a proactive strategy by shifting its business mix towards less cyclical products and higher EBITDA margin segments, which is expected to enhance cash flow generation with a target of approximately 50% free cash flow conversion. The company's Integrated Solutions segment reported a year-over-year volume increase of 2.6%, driven primarily by strong demand for recycled fiber, highlighting resilience in its product offerings. Additionally, volumes in the Customized Polymer Solutions segment grew by 2.2% year-over-year, indicating positive momentum despite challenges in certain product categories.

Greif Inc. has experienced a marked decline in volumes across its segments, with Durable Metal Solutions and Sustainable Fiber Solutions reporting decreases of 5.8% and 7.6% year-over-year, respectively, primarily driven by weak demand in key markets such as housing and petrochemicals. The company's financial outlook is further hampered by multiple downside risks, including deteriorating supply/demand conditions in the industrial packaging sector, increased input cost volatility, and challenges in managing pricing alongside these costs. Additionally, factors such as weaker-than-expected capital return trends and exposure to international markets contribute to the negative sentiment surrounding Greif's stock performance.