UPDATE: Goldman Sachs Downgrades Rock-Tenn Company to Buy; Valuation Fair
Goldman Sachs downgraded Rock-Tenn Company (NYSE: RKT) from Conviction Buy to Buy and maintained its $83.00 price target.
Goldman Sachs noted, "While we like RKT's leverage to our constructive view containerboard supply/demand, favorable capital allocation track record, and interesting valuation, we remove from our CL as the stock appears to be factoring in a Spring containerboard price hike, which are currently not modeling. Since mid-May 2012, RKT shares are up 40% vs. S&P 500 of 12%, which we attribute to the market beginning to discuss the potential of a Spring price hike. While we expect containerboard supply/demand will be tight in 2013, we are currently not forecasting a Spring price hike given lack of visibility in demand, and already robust profitability levels."
Rock-Tenn Company closed at $74.55 on Monday.
Latest Ratings for RKT
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.