Goldman Bullish on Cardboard (RKT)

February 22, 2013 11:51 AM EST
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Price: $61.97 --0%

Rating Summary:
    13 Buy, 4 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Despite a recent jump of 324 thousand tons, containerboard inventories remain lean. With this in mind, analysts at Goldman Sachs reiterated a Buy rating on Rock-Tenn Company (NYSE: RKT) given its exposure to the product.

"We believe the above-average inventory build over the last two months reflects producer efforts to replenish paper supplies that had declined to critically low levels, and ahead of significant planned maintenance downtime in the 1H2013. In our coverage, Packaging Corp. (NYSE: PKG), International Paper (NYSE: IP), Rock-Tenn (NYSE: RKT), and Boise (NYSE: BZ) are exposed to containerboard," said analyst Alex Ovshey.

"We reiterate our Buy on RKT given its leverage to containerboard, strong FCF generation, and favorable capital allocation track record," added the analyst.

For an analyst ratings summary and ratings history on Rock-Tenn (NYSE: RKT) click here. For more ratings news on Rock-Tenn click here.

Shares of Rock-Tenn closed at $83.20 yesterday.

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