Wells Fargo analyst Christopher Manuel upgraded the Containers and Packaging sector to Overweight from Market Weight saying the stocks have been overly discounted by the market. Currency movements and weakness in China, Brazil and Russia have pushed the sector lower, Manuel tells investors in a research note. However, names in the space have historically posted growing cash flows through all parts of the economic cycle, he argues. Containerboard stocks International Paper (IP), KapStone (KS), Packaging Corp. (PKG) and WestRock (WRK) are the most attractive, the analyst writes. In addition to those four names, Manuel reiterates Outperform ratings on Berry Plastics (BERY) and Crown Holdings (CCK). He has Market perform ratings on Bemis (BMS) and Silgan Holdings (SLGN). In Packaging, Manuel has Outperform ratings on Greif (GEF) and REX American Resources (REX).

Reports Q1 revenue $4.62B, consensus $4.56B. "International Paper made progress executing our strategic initiatives in the first quarter,'' said Mark Sutton, chairman and CEO. "We saw commercial benefits from our business strategies, as well as cost benefits from mill system optimization. Although costs remain elevated and volumes were seasonally lower in the quarter, market trends continue to improve."