Jefferies Maintains a 'Buy' on Rock-Tenn (RKT); Rebasing Estimates But LT Story Intact

Jefferies maintains a 'Buy' on Rock-Tenn (NYSE: RKT) price target cut from $79 to $75.

Analyst, Philip Ng, said, "While earnings will likely be uninspiring the next two quarters, with estimates being rebased sharply and export prices bottoming out, we believe the downside is limited. More importantly, with the LT structural and synergy story intact, and shares trading at 4.8x 2013E EV/EBITDA, we believe the risk reward remains compelling."

"...To reflect a more challenging pricing environment, we are lowering our 2012 and 2013 EPS estimates from $6.08 and $8.15 to $5.06 and $7.35, respectively."

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 $61.25 yesterday.

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