Jefferies Reiterates Buy on WestRock (WRK) Following HH&B Divestiture Reports
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields fall on U.S. jobs data, euro flat before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Jefferies reiterated a Buy rating and $62.00 price target on WestRock LLC (NYSE: WRK) following reports that the company received bids for the HH&B segment. Reuters reported the company has initiated the sale process for the Home, Health, & Beauty (HHB) segment, which generated $576 mil of sales and $110 mil of EBITDA in 2016. HH&B is reportedly being valued at 10x EV/EBITDA, which is inline with SEE, ATR, BMS, and largely consistent with our expectations.
Analyst Philip Ng commented, "Reuters reported WRK has received bids for the previously telegraphed sale of the HH&B segment, which could generate $1+ bil of cash proceeds and we do not anticipate meaningful tax leakage. While the divestiture will likely be modestly dilutive initially, if WRK elects to take a balanced approach in deploying the proceeds, mgmt. can unlock shareholder value by capitalizing on the "valuation arb" of the assets."
Shares of WestRock LLC closed at $50.27 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Workday (WDAY) to $71 Following 3Q
- FBR Capital Cuts Price Target on Express (EXPR) Following 3Q EPS Miss
- Jefferies Cuts Price Target on PG&E Corp. (PCG) to $65 Following Rate Case Decision
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesJefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!