Containerboard Q2 Preview & July Barometer: Improving S/D Fundamentals but Price Lagging Cost

Research evidence excerpt

Containerboard Q2 Preview & July Barometer: Improving S/D Fundamentals but Price Lagging Cost

Equity Research

Multi Company Update — July 8, 2026

Containers & Packaging

Containerboard Q2 Preview & July Barometer:

Improving S/D Fundamentals but Price

Lagging Cost

Thoughts Ahead of Macro Noisy Quarter; CPB Inches Higher

Rating Changes

Our Call Rating Price Target

We exp Q2 results from cboard producers to highlight improving S/D fundamentals, Ticker Curr. Prior Curr. Prior

partially offset by price/cost remaining a headwind. The setup is strong into H2 as op rates PKG EW OW $246.00 $245.00

signal higher, costs have likely peaked, and more price is on the way.

Expectations tempered on Q2 perf, but rising on H2 outlooks. We believe investor Gabe Hajde

exp. are largely level-set for Q2 results as both the price/cost headwinds and imp. S/D Equity Analyst | Wells Fargo Securities, LLC

Gabe.Hajde@wellsfargo.com | 216-470-8960

fundamentals were telegraphed at our June conference. Looking to H2, we believe exp.

Richard C Carlson, CFAare rising as price/cost turns to a tailwind and imp. op rates should persist. Favorable early

looks to '27 are likely as '26 price actions flow thru & inflation moderates. In our view, AssociateRichard.Carlson@wellsfargo.comEquity Analyst | Wells Fargo| 212-214-5045Securities, LLC

durability of a demand inflection is key to keep momentum.

Bailey Gordon

Associate Equity Analyst | Wells Fargo Securities, LLC

We are d/g shares of PKG to EW from OW (PT now $246 from $245). PKG has been a Bailey.Gordon@wellsfargo.com | 212-214-3310

relative outperformer through the ME conflict—helped by a flight to quality—and now

trades at a sizable premium vs. key peers. In our view, risk/reward is currently balanced.

Reit OW rating on SW, IP.