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.

Analyst Upgrades

• Oracle (ORCL) to outperform from perform at Oppenheimer.
• Accenture (ACN) to buy from hold at Jefferies.
• Advanced Energy (AEIS) and Applied Materials (AMAT) to overweight from equal weight at Barclays.
• Spreadtrum (SPRD) to buy from hold at Auriga.
• Healthcare Realty Trust (HR) and Tortoise Energy Capital (TYY) to outperform from neutral at RW Baird.
• Global Payments (GPN) to equal weight from underweight at Morgan Stanley.
• CBS (CBS) to buy from neutral at BofA/Merrill.
• Sonic (SONC) to outperform from neutral at Cowen.

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.

The shares of Packaging Corp of America (PKG), first discussed here on June 3, 2009 at a price of $16.55, have pulled-back in-sync with the Dow's recent drop, but I still like the shares. Here's why:

Look for Packaging Corp's revenue to increase about 8-10% in 2010. In June 2009, the calculation was made that a lack of capacity in the containerboard industry, due to recession cut-backs, would benefit Packaging Corp., and so far the calculation is on the mark. The containerboard market should rebound nicely in 2010, after a 2009 to forget.

Packaging Corp. of America (PKG), which I first wrote about on June 3, 2009, at a price of $16.55, is business model that continues to show promise. Here's why:

Way back in June, the calculation was made that a lack of capacity in the containerboard industry, due to recession cut-backs, would benefit Packaging Corp., and so far the calculation is on the mark. The containerboard market should rebound nicely in 2010, leading to a 5% to 7% revenue increase for PKG, after a 10% decline in 2009.

Packaging Corp. of America (PKG) is rising on schedule, which is why I'm reiterating my buy rating for the company's shares, first recommended on June 3, 2009 at a price of $16.55. If you bought PKG in June, you're up about 30%.

Back in June, the calculation was made that a lack of capacity in the containerboard industry, due to recession cut-backs, would benefit Packaging Corp., and so far the calculation is on the mark. The containerboard market should rebound nicely in 2010, leading to a 4-7% revenue increase for PKG, after a likely 10% decline in 2009.

I'm reiterating my Buy rating for Packaging Corp. of America (NYSE: PKG), first recommended on June 3, 2009, at a price of $16.55.

In June, the calculation was made that a lack of capacity in the containerboard industry, due to recession cut-backs, would benefit Packaging Corp., and so far the calculation is on the mark.

Analyst upgrades:

• Piper Jaffray upgraded PetMed Express (NASDAQ: PETS) to Overweight from Neutral following the better-than-expected Q1 results. The firm raised its target on shares to $22 from $19.
• Deutsche Bank upgraded International Paper (NYSE: IP) and Packaging Corp. (NYSE: PKG) to Buy from Hold to reflect stabilization in the containerboard industry. The firm raised its target price on Packaging Corp. to $24 from $14, and on International Paper to $24 from $16.
• Bernstein upgraded Human Genome Sciences (NASDAQ: HGSI) to Outperform from Market Perform following the positive Phase III data for Benlysta in lupus.
• IBM (NYSE: IBM) was upgraded to Hold from Sell at Societe Generale.
• British Airways (OTC: BAIRY) was upgraded to Buy from Sell at Goldman.
• Continental AG (OTC: CTTAY) was upgraded to Hold from Sell at Citigroup.

Analyst upgrades

• Oppenheimer upgraded Savient Pharmaceuticals (NASDAQ: SVNT) to Perform from Underperform after the FDA's Arthritis Advisory Committee voted 14-1 in favor of approving Krystexxa for gout.
• Banc of America/Merrill upgraded Texas Instruments (NYSE: TXN) to Buy from Underperform and raised its target to $27 from $18 based on expectations that margin expansion will be higher than Street expectations.
• UBS said Nvidia (NASDAQ: NVDA) has limited downside risk given the improved outlook for the graphics processor market and professional solutions business. Shares were upgraded to Neutral from Sell and its target was raised to $11.50 from $8.
• BHP Billiton (NYSE: BHP) was upgraded to Outperform from Neutral at Macquarie.
• Neutral Tandem (NASDAQ: TNDM) was upgraded to Outperform from Neutral at Baird.
• Central Garden & Pet (NASDAQ: CENT) was upgraded to Buy from Neutral at SunTrust.

Just put the Packaging Corp. of America (NYSE: PKG) in the category of a get-ahead-of-the-pack play.

PKG is the fifth largest producer of containerboard and corrugated packaging products, including those proverbial corrugated boxes, and as one might sense, box demand declined with the recession: when you sell fewer things, you need fewer boxes in which to put those things.

TheStreet.com's Jim Cramer says a few calls Tuesday show the positives in this market.

So many conference calls, so little time to really assess what the heck was happening when it was happening. Nevertheless, a few calls pretty much defined the positive action, and they have to be highlighted.

First, the TD Ameritrade (NASDAQ: AMTD) (Cramer's Take) call showed you what I have been looking for: renewed interest in the stock market by retail people trying to make money off the wild swings and the exchange-traded funds. I am no fan of the ETFs, but I am a fan of new people in the game, and Ameritrade confirmed what I was thinking could be happening: actual interest in stocks at the new lower levels. It's a positive -- not a huge positive, but a positive nonetheless.

TheStreet.com's Jim Cramer says if we let some banks give it back, others may rush to do so unnecessarily.

Breather day? Or does this monster ever breathe?

We are seeing stress levels coming down: the magic VIX going under 40?, money coming in, industrials bouncing -- I watch International Paper (NYSE: IP) (Cramer's Take), Du Pont (NYSE: DD) (Cramer's Take), Packaging Corp. (NYSE: PKG) (Cramer's Take) and Ingersoll Rand (NYSE: IR) (Cramer's Take) for true industrial bounces. We are seeing the rails and the fertilizers -- two 2008 sectors -- regaining life and lifetime moves in a session.

But it was and is and always will be about the banks, and no matter what we do it will come back to them. They are the reason we got in trouble, and they are the reason we got out of trouble.

Lehman has upgraded Pfizer (NYSE:PFE) to "equal weight" from "underweight" according to Briefing.com. The news service also reports that Friedman Billings reiterated its "underperform" rating on Freddie Mac (NYSE:FRE).

Moody's raised the senior unsecured debt ratings of Packaging Corp. of America NYSE:PKG) to investment grade from junk status according to the AP,

AIG (NYSE:AIG) was cut to "market perform" at KBW according to Briefing.com.

MOST NOTEWORTHY: BT Group, Luminent Mortage, Cognos, Thor Industries and Watson Pharmaceuticals were today's noteworthy upgrades:

• ING Group upgraded shares of BT Group (NYSE: BT) to Hold from Sell to reflect the company's more stable revenue trend and improving cash flow generation.
  
• Deutsche Bank upgraded shares of Luminent Mortgage Capital (NYSE: LUM) to Hold from Sell, as they believe the company's portfolio is beginning to stabilize and its liquidity has improved.
  
• Goldman upgraded Cognos Inc (NASDAQ: COGN) to Buy from Neutral following its Q2 report.
  
• Thor Industries (NYSE: THO) was raised to Sector Perform from Underperform at RBC Capital Markets. The firm's checks indicate strengthening backlog and lower promotional spending.
  
• Roth Capital believes Watson Pharmaceuticals (NYSE: WPI) is about to enter a growth phase with Paul Bisaro at the helm and is positive on Silodosin potential. The firm upgraded shares to Buy from Hold.

OTHER UPGRADES:

• Bank of the Ozarks (NASDAQ: OZRK) was upgraded to Buy from Neutral at B. Riley.
  
• Bear upgraded Harman International (NYSE: HAR) to Outperform from Market Perform.
  
• Goldman upgraded Packagaing Corporation (NYSE: PKG) and Smurfit-Stone Container (NASDAQ: SSCC) to Buy from Neutral.
  
• Friedman Billings raised Conseco Inc (NYSE: CNO) to Outperform from Market Perform.