The firm maintained its "buy" rating on the stock.
"We still think PKG is compelling with the stock trading with a 9% FCF yield, and proving it can navigate in a tough environment and have nice self help drivers from D-3 and Boise," Jefferies said in an analyst note.
After facing challenges in the first quarter of 2015, the company is back on track executing at a high level, as it reported strong second quarter 2015 earnings yesterday, before the opening bell, Jefferies added.
For the latest quarter, the company reported earnings of $1.16 per diluted share, compared with $1.01 per diluted share for the same quarter in 2014. The company's revenue however was $1.45 billion, compared with the $1.47 billion it reported in the same quarter the previous year.
Shares of Package Corp. of America closed up by 8.27% to $70.90 on Wednesday afternoon.
Packaging Corp. of America manufactures and sells containerboard and corrugated packaging products in the U.S., Europe, Mexico, and Canada.
Separately, TheStreet Ratings team rates PACKAGING CORP OF AMERICA as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PACKAGING CORP OF AMERICA (PKG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: PKG Ratings ReportPKG data by YCharts