UPDATE: J.P. Morgan Downgrades Rock-Tenn Company to Neutral, Lowers PT
In a report published Monday, J.P. Morgan & Co. downgraded its rating on Rock-Tenn Company (NYSE: RKT) from Overweight to Neutral, and lowered its price target from $90.00 to $79.00.
J.P. Morgan noted, “RKT completed its transformational acquisition of Smurfit-Stone in May 2011, around which it is in the process of realizing synergies and performance improvements. The company has seen some bumps in the road with the execution of these objectives, though it appears that the Hodge project is turning a corner. That said, execution on future performance improvement projects, like Hopewell, remain a “show me,” in our view. RKT is the most levered stock to potential containerboard price increases in our group, though with the impact of the most recent price increase mostly reflected in the stock and our view that it could be some time before we see another price increase attempt, upside catalysts appear limited for now.”
Rock-Tenn Company closed on Friday at $67.49.
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