Several investment firms have updated their stock ratings and price targets on shares of Rock-Tenn Company (NYSE: RKT) in the last week:
- Rock-Tenn Company had its price target raised by analysts at Jefferies Group to $12.00.
- Rock-Tenn Company had its “outperform” rating reaffirmed by analysts at BMO Capital Markets. They now have a $102.00 price target on the stock, up previously from $95.00. They wrote, “We are raising our RockTenn estimates and 12-month target following the company’s presentation to analysts on February 22. The company believes it has now optimized its management team following the acquisition of SmurfitStone (SSCC) and is confident of achieving an additional $225mm in synergies by the end of 2014. The run-rate at the end of fiscal Q1/13 was $325mm. Some of the challenges for RockTenn were improving the morale of the SSCC employees (top SSCC management had received large bonuses and the SSCC employees received none) and changes to sales such as incentives based on profits rather than volume, which explains the lack of price discipline by SSCC.”
- Rock-Tenn Company had its “buy” rating reaffirmed by analysts at Jefferies Group. They now have a $105.00 price target on the stock, up previously from $93.00. They wrote, “Despite the rally, there’s still good upside to the stock now that a containerboard price increase has been announced, and we believe the mgmt changes and investments RKT is making will allow it to execute better. After spending time with mgmt, it’s clear there’s a lot of low hanging fruit on operations, which should bridge the margin disparity between its peers.”
- Rock-Tenn Company was upgraded by analysts at JPMorgan Chase from a “neutral” rating to an “overweight” rating. They now have a $108.00 price target on the stock, up previously from $88.00. They wrote, “The primary driver is our view that the spring price increase attempt by G-P will be followed by the rest of the industry and ultimately successful, around which RKT has the most leverage. Aside from pricing, we also think that RKT is slowly chipping away at the integration of SSCC and earning back investor trust on execution. Finally, we believe that the company is set to generate meaningful FCF in years ahead, on which valuation is not expensive. Further, as leverage comes down (4.0x pension-adjusted FY12 to 1.7x by FY14E), we see opportunities to start returning cash to shareholders.”
- Rock-Tenn Company had its “buy” rating reaffirmed by analysts at Deutsche Bank. They now have a $85.00 price target on the stock.
- Rock-Tenn Company was upgraded by analysts at Longbow Research from a “neutral” rating to a “buy” rating. They now have a $105.00 price target on the stock.
- Rock-Tenn Company had its price target raised by analysts at Barclays Capital from $90.00 to $110.00. They now have an “overweight” rating on the stock.
Shares of Rock-Tenn Company traded down 0.38% during mid-day trading on Friday, hitting $88.11. Rock-Tenn Company has a 52 week low of $49.24 and a 52 week high of $89.49. The stock’s 50-day moving average is currently $80.20. The company has a market cap of $6.275 billion and a P/E ratio of 24.78.
Rock-Tenn Company (RockTenn) is a North America’s integrated manufacturer of corrugated and consumer packaging.
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