Deutsche Bank Downgrades Rock-Tenn (RKT) to Hold; Fairly Valued After Recent Rally

Deutsche Bank downgraded Rock-Tenn (NYSE: RKT) from Buy to Hold with a price target of $75.00.

Analyst, Mark Wilde, said, "RKT’s stock has rallied sharply in the past few weeks in anticipation of successful implementation of the $50/ton containerboard price hike. However, with sluggish demand and continued drop in OCC costs, we’re a bit cautious on implementation of the price hike. At the same time, RKT’s integration of Smurfit has proven to be more challenging than most expected. Market conditions in the paperboard business also appear to be a bit soft and prices are under pressure. At current levels, we think the stock is fairly valued."

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 $70.34 yesterday.

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