Wells Fargo Upgrades WestRock LLC (WRK) to Overweight

Wells Fargo analyst Gabe Hajde upgraded WestRock LLC (NYSE: WRK) from Equal Weight to Overweight with a price target of $52.00.

The analyst comments "We believe WRK has developed into a paper packaging mainstay, with an inherent and sustainable competitive advantage driven by its fiber-based product offering (corrugated and boxboard packaging), differentiated commercial capabilities, and proven M&A discipline. Accordingly, we are bullish on WRK’s ability to monetize growth in the North American packaging space, augmented by early-stage sustainability initiatives (WRK has already reached $100 million in annualized sales) from plastic to fiber-based alternatives (identified as a $5+ billion long-term opportunity). Operationally, WRK also remains focused on the long-term, as evidenced through the multiple margin enhancing projects (Florence & Três Barras) through FY2022. In addition, with FCF generation of >$1.0 billion and $1.35 billion in FY2020 and FY2021, respectively, investors stand to benefit from low-risk de-leveraging. As such, we view the risk/reward as favorable."

For an analyst ratings summary and ratings history on WestRock LLC click here. For more ratings news on WestRock LLC click here.

Shares of WestRock LLC closed at $42.91 yesterday.

You May Also Be Interested In

• New Street Research Upgrades Micron Technology (MU) to Buy
• Keefe, Bruyette & Woods Upgrades Nayax (NYAX) to Outperform
• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform