UPDATE: D.A. Davidson Downgrades Rock-Tenn Company As Shares Approach Target

In a report published Tuesday, D.A. Davidson analyst Steven Chercover downgraded the rating on

from Buy to Neutral, but reiterated the $65.00 price target. In the report, D.A. Davidson noted, “We are downgrading RockTenn stock from Buy to NEUTRAL as the shares are within 5% of our $65 target and we lack a catalyst to raise the target at this juncture. RKT shares have appreciated 15% since our Q4-14 update was published on November 5th, at which point we introduced 2016 estimates. Our target represents just over a 6.5x multiple of 2016 EBITDA, which we believe is relatively fair value for a Consumer and Industrial Packaging company.” Rock-Tenn Company closed on Monday at $62.10.