Thomas Industrial Data Predicting Growth for Pactiv Evergreen (NASDAQ: PTVE) after IPO
The Thomas Industrial Data team tracks product and service sourcing trends on the Thomasnet.com platform to provide an unprecedented view of the industrial economy. We have been tracking sharp increases for quite some time is in the area of packaging and packaging equipment - more specifically Food Packaging. As you can see below, the demand for Food packaging products began its growth trajectory on the platform in late 2019 and has continued a steady climb throughout 2020. COVID-19 has accelerated this growth due to the increased demand for takeout packaging to service the current trend in contactless restaurant dining and food delivery packaging to keep up with consumer's growing use of online grocery ordering.
A few weeks ago, I was doing research on the Snowflake (SNOW) IPO, and I read about the IPO announcement for Pactive Evergreen (PTVE). As Thomas Industrial Data trends show clear growth in this sector and have shown positive indicators for Sustainable Packaging as well, I dug deeper to learn more about this opportunity.
Pactiv Evergreen is the self described "largest manufacturer and distributor of foodservice, food merchandising products and fresh beverage cartons in North America". The IPO was led by Credit Suisse and Citigroup, with 12 additional banks underwriting the deal. The original IPO was planned to offer 41.03 million shares at a price range between $18-21.
The business is comprised of two divisions. First, Pactiv is the "world’s largest manufacturer and distributor of food packaging and foodservice products, supplying packers, processors, supermarkets, restaurants, institutions and foodservice outlets across North America" according to their website. They offer agricultural packaging, containers, catering trays, wraps, tableware, cups, straws, and more.
The second business group, Evergreen Packaging provides customizable FreshHouse? cartons, beverage packaging equipment, paperboard for liquid packaging and food service applications, as well as other paper products. They place a heavy focus on sustainable practices to make their paper and play an active role in certified forestry, developing the award-winning Evergreen Forest Certification (EFC) program in 2013.
The IPO for Pactiv Evergreen had a slow start on Thursday 9/17/2020 opening at $12.75 per share - hitting a low of $10.40 in the first day. Investors saw the value buy in the dip and jumped in beginning the upward trajectory. Since that time, the share price has increased to $13.33 and continues the growth curve as of 9/28/2020. As sourcing for Food Packaging is up 59.4% YoY on the Thomasnet.com platform, we are predicting continued growth for PTVE. Analyst ratings and reports have yet to be published for PTVE. I'll keep an eye on this and update again in the near future.
UPDATE 11/30/2020 @ 10:17am EDT - PTVE is currently trading at $16.68 which is an increase of 25% in about 2 months.
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