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Pro Analysis

Here's a new under-the-radar Trump trade: Boxes


An International Paper Co. employee stacks corrugated boxes at the company's factory in Mt. Carmel, Pennsylvania.
Paul Taggart | Bloomberg | Getty Images
An International Paper Co. employee stacks corrugated boxes at the company's factory in Mt. Carmel, Pennsylvania.

Jefferies recommended paper packaging stocks, predicting the group will outperform because of improving demand from domestic manufacturers under President Donald Trump.

Analyst Philip Ng suggests buying shares of WestRock, International Paper and Packaging Corporation of America. His price targets for the three companies are $64, $62 and $104, representing upside of 20 percent, 19 percent and 11 percent, respectively.

"The current administration is looking to stimulate growth in the U.S. and placing an emphasis in revitalizing U.S. manufacturing," Ng wrote in a note to clients Friday. "The group is positioned to capitalize on an uptick in the U.S. economy, lower corporate taxes and any impact from cross-border taxes."