WestRock LLC (WRK) PT Raised to $64 at Jefferies; Reiterates Buy
Jefferies raised its price target on WestRock LLC (NYSE: WRK) to $64.00 (from $59.00) while maintaining a Buy rating. Management reiterated its FCF guidance despite divesting HH&B and larger input cost headwinds, with better performance from taxes, land, and WC making up the shortfall.
Analyst Philip Ng commented, "With the stock trading with a 10% PF FCF yield and mgmt doing a good job unlocking value with the HH&B divestiture and acquisition of MPSX, we remain comfortable with our Buy. While higher input costs are muting the impact of the fall containerboard price increase, given the tightness of the market, we could see a spring price hike which provide could meaningful upside to our estimates."