UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Rock-Tenn Company on Raised Estimates

In a report published Monday, BMO Capital Markets reiterated its Outperform rating on Rock-Tenn Company RKT, and raised its price target from $95.00 to $102.00. BMO Capital Markets noted, “We are raising our RockTenn estimates and 12-month target following the company's presentation to analysts on February 22. The company believes it has now optimized its management team following the acquisition of SmurfitStone (SSCC) and is confident of achieving an additional $225mm in synergies by the end of 2014. The run-rate at the end of fiscal Q1/13 was $325mm. Some of the challenges for RockTenn were improving the morale of the SSCC employees (top SSCC management had received large bonuses and the SSCC employees received none) and changes to sales such as incentives based on profits rather than volume, which explains the lack of price discipline by SSCC.” Rock-Tenn Company closed on Friday at $86.50.