Greif (GEF) Stock Forecast & Price Target

Greif Inc. has shown a proactive shift towards less cyclical products and broader end-markets, achieving growth in higher EBITDA margin segments, which contributes to improved cash flow generation with a target of approximately 50% free cash flow conversion. Additionally, the company's Integrated Solutions segment experienced a year-on-year volume increase of 2.6%, driven by strong demand for recycled fiber. Furthermore, the Customized Polymer Solutions segment reported a 2.2% year-on-year volume growth, highlighting resilience despite some declines in larger containers.

Greif Inc. has experienced significant volume declines in its business segments, with Durable Metal Solutions reporting a 5.8% year-over-year decrease and Sustainable Fiber Solutions showing a 7.6% drop, primarily due to sluggish demand in critical markets such as housing and petrochemicals. Further compounding this negative outlook are the deteriorating supply and demand conditions in the paper and packaging industries, alongside increased input cost volatility for essential materials and operational factors. Additionally, concerns around the company's ability to effectively manage pricing and input costs, coupled with potential weaknesses in capital return trends and exposure to international markets, further reinforce the reasons for a negative financial assessment.