Goldman Sachs Upgrades Rock-Tenn (RKT) to Conviction Buy, Sees 22% Upside
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Price: $101.39 -0.68%
Rating Summary:
13 Buy, 1 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
13 Buy, 1 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade RKT Now!
Goldman Sachs upgraded Rock-Tenn (NYSE: RKT) from Neutral to Conviction Buy and raised their price target from $56 to $83 citing leverage to higher containerboard prices.
The firm said channel checks show that producers will implement the announced August $50/ton containerboard price increase over the September/October timeframe.
"Our channel checks suggest that producers are showing strong resolve to push through the price increase, and that the price hike is gaining traction in the market place. We believe the supply/demand data shows that the market is balanced, but not tight, however, we think the data is ‘good enough’ to support the price hike."
Goldman raised FY2013 EPS estimate for RKT to $7.28 from $5.73 reflecting revised higher linerboard price forecasts. Updated FY2012-2014 EPS estimates for RKT now stand at $4.45, $7.28, $8.20, respectively, vs. $4.43, $5.73, and $6.78, previously.
For an analyst ratings summary and ratings history on Rock-Tenn click here. For more ratings news on Rock-Tenn click here.
Shares of Rock-Tenn closed at $68.26 yesterday, with a 52 week range of $43.61-$74.15.
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The firm said channel checks show that producers will implement the announced August $50/ton containerboard price increase over the September/October timeframe.
"Our channel checks suggest that producers are showing strong resolve to push through the price increase, and that the price hike is gaining traction in the market place. We believe the supply/demand data shows that the market is balanced, but not tight, however, we think the data is ‘good enough’ to support the price hike."
Goldman raised FY2013 EPS estimate for RKT to $7.28 from $5.73 reflecting revised higher linerboard price forecasts. Updated FY2012-2014 EPS estimates for RKT now stand at $4.45, $7.28, $8.20, respectively, vs. $4.43, $5.73, and $6.78, previously.
For an analyst ratings summary and ratings history on Rock-Tenn click here. For more ratings news on Rock-Tenn click here.
Shares of Rock-Tenn closed at $68.26 yesterday, with a 52 week range of $43.61-$74.15.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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