He also likes Lake Forest, Ill.-based Pactiv , the packaging leader in the U.S. foodservice industry. Pactiv (PTV) trades for 13 times earnings and has significant pension liabilities, but its earnings should be helped by a recent acquisition.

Pactiv's Not Attractive:
Value Investor portfolio manager David Peltier explains why packaging maker Pactiv isn't worth wrapping up and sticking in your portfolio despite lower materials costs.

Click here to watch the video.

Pactiv (PTV) was upgraded from neutral to overweight at JPMorgan. Estimates also raised, to reflect the drop in resin prices. Company can grow earnings and gain market share despte the current environment.

But relief might be in sight, since the company recently locked in a round of price hikes. At about 24, shares are trading at 12.7 times projected 2008 earnings, compared with 13.4 times for the sector and 14.4 times for paper packaging stocks. Pactiv and its ilk could well rebound if oil pulls back and if the dollar stabilizes.

Pactive (PTV) was downgraded at Merrill Lynch. Lowered to Neutral from Buy. Price target of $32 removed. 2008 EPS estimates lowered $1.85 from $2.05.

Pactiv (PTV) was upgraded from Hold to Buy, Deutsche Bank said. $35 price target. Stock is attractively valued, following the recent sell-off. Margins should also improve, once the Prairie Packaging acquisition is fully integrated.

Upgraded by Wachovia from Mkt Perform to Outperform

homeland security

Downgraded by Wachovia from Outperform to Mkt Perform

Downgraded by Citigroup from Buy to Hold