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UPDATE: Goldman Sachs Downgrades Rock-Tenn Company to Buy; Valuation Fair

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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

DateFirmActionFromTo
Oct 2014DundeeInitiates Coverage onBuy
Oct 2014BarclaysMaintainsOverweight
Oct 2014Bank of AmericaUpgradesNeutralBuy

View More Analyst Ratings for RKT
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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