Rock-Tenn Rating Increased to Buy at DA Davidson (RKT)
Rock-Tenn (NYSE:RKT) was upgraded by analysts at DA Davidson from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Thursday, TheFlyOnTheWall.com reports. The firm currently has a $120.00 price objective on the stock. DA Davidson’s price objective indicates a potential upside of 19.99% from the company’s current price.
The analysts wrote, “Following the Q3-13 blowout results, it became apparent that RockTenn management had begun to reconcile operational issues related to the integration of Smurfit-Stone. We had no doubt that management would get the job done, and now the operational leverage within the company is beginning to come to fruition given the significant year-over-year Corrugated Packaging EBITDA margin expansion (600bp) and strong results of from operations in the previous quarter. We think RockTenn is the leveraged way to play the containerboard space.”
Rock-Tenn (NYSE:RKT) traded up 3.91% on Thursday, hitting $103.92. 403,641 shares of the company’s stock traded hands. Rock-Tenn has a 52-week low of $61.26 and a 52-week high of $126.05. The stock’s 50-day moving average is $110.8 and its 200-day moving average is $104.1. The company has a market cap of $7.387 billion and a P/E ratio of 11.51.
Rock-Tenn (NYSE:RKT) last released its earnings data on Tuesday, July 23rd. The company reported $2.16 earnings per share for the quarter, beating the analysts’ consensus estimate of $1.66 by $0.50. The company had revenue of $2.45 billion for the quarter, compared to the consensus estimate of $2.45 billion. During the same quarter last year, the company posted $0.95 earnings per share. Rock-Tenn’s revenue was up 6.3% compared to the same quarter last year. On average, analysts predict that Rock-Tenn will post $7.11 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on RKT. Analysts at Zacks downgraded shares of Rock-Tenn from an “outperform” rating to a “neutral” rating in a research note to investors on Tuesday, October 1st. They now have a $126.40 price target on the stock. Separately, analysts at Merrill Lynch downgraded shares of Rock-Tenn from a “buy” rating to a “neutral” rating in a research note to investors on Monday, September 30th. Finally, analysts at Bank of America Corp. downgraded shares of Rock-Tenn from a “buy” rating to a “neutral” rating in a research note to investors on Monday, September 30th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and ten have given a buy rating to the stock. Rock-Tenn currently has a consensus rating of “Buy” and an average target price of $117.44.
Rock-Tenn Company (NYSE:RKT) is a North America’s integrated manufacturer of corrugated and consumer packaging.
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