Graphic Packaging (NYSE:GPK) shares fell more than 6% on Tuesday despite the company reporting better-than-expected Q4 results. EPS came in at $0.59, compared to the Street estimate of $0.58. Revenue was $2.39 billion, better than the street estimate of $2.33 billion.

According to the analysts at Deutsche Bank, Graphic Packaging continues to beat expectations on underlying performance, but the market clearly did not appreciate the company's decision to increase CAPEX in order to construct a greenfield CRB mill that will add a net 200,000 tons of capacity in 2026.

The company's 2023 EBITDA target of $1.7-$1.9 billion was also above the Street estimate of $1.746 billion.