Packaging Corp. of America (PKG), first discussed here on June 3, 2009, at a price of $16.55, continues to move higher this winter, pushing toward the $30 level. I obviously still like the business model at this juncture.

Packaging Corp.'s revenue will likely increase about 4% to 7% in 2011, after an impressive 13% surge in 2010. The containerboard market for corrugated boxes should continue to rebound in 2011, with more pricing power and better margins.

Packaging Corp. of America (PKG), first discussed here on June 3, 2009, at a price of $16.55, has put further distance between its shares and the $20 level, and the business model is still preferred at this juncture.

Look for Packaging Corp.'s revenue to likely increase about 4% to 7% in 2011, after a likely 10% to 12% increase in 2010. The containerboard market for corrugated boxes should continue to rebound in 2011, with more pricing power, and better margins.

The shares of Packaging Corp. of America (PKG), first discussed here on June 3, 2009, at a price of $16.55, meandered this summer, but just look on that sideways action as an opportunity to scoop-up shares, at a relative bargain. Here's why.

Packaging Corp.'s revenue will likely increase about 9% to 11% in 2010. The containerboard market for corrugated boxes should continue to rebound in 2010, with more pricing power, and better margins.

Further, relatively low spare capacity puts PKG in a corrugated boxes sweet spot, particularly if U.S. GDP growth is better than expected in the second half of 2010. According to my analysis, PKG should trade above $30 in 2010.

MOST NOTEWORTHY: Rivals Coca-Cola Co (KO) and PepsiCo Inc (PEP), as well as General Mills (GIS), were today's notable upgrades.

• Goldman Sachs upgraded both The Coca-Coca Co (NYSE: KO) and PepsiCo Inc (NYSE: PEP) to Buy from Neutral: The upgrade for Coca-Coca was to reflect the company's recent strong results, and Pepsi's upgrade was to reflect Gatorade's expected profit re-acceleration by the second half of 2007.

• General Mills Inc (NYSE: GIS) was upgraded to Market Perform from Underperform at BMO Capital Markets with a $58 target based on achievable outlook and absence of any negative catalysts.

OTHER UPGRADES:

• Bank of America upgraded Colgate-Palmolive Co (NYSE: CL) to Buy from Neutral with a $74 target. The firm believes Colgate's long-term growth rate can accelerate to 12-13% from 10% on margin upside.

• Prudential upgraded shares of Avon Products Inc (NYSE: AVP) to Neutral from Underweight to reflect the company's improving fundamentals; the firm believes that news over the last six months has been getting more positive.

• Buckingham upgraded Tween Brands Inc (NYSE: TWB) to Accumulate from Neutral.

• CIBC upgraded Cablevision Systems Corp (NYSE: CVC) to Buy from Hold. Raymond James raised Lithia Motors (LAD) to Strong Buy from Market Perform following its Q4 report and guidance.

• First Albany upgraded Stamps.com Inc (NASDAQ: STMP) to Buy from Neutral, with a $19 target.

• Deutsche Bank upgraded International Paper Co (NYSE: IP), Packaging Corp of America (NYSE: PKG) and Smurfit-Stone Container Corp (NASDAQ: SSCC) to Buy from Hold. The firm believes momentum is turning and backlogs and pricing are emerging from the winter doldrums stronger than expected.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).