2023-04-20 07:02:10 ET
Bank of America upgraded WestRock ( NYSE: WRK ) to a Buy rating from Neutral on Thursday.
Analyst George Staphos said that while the firm can see plenty of risks with WRK, the 10X price-to-earnings ratio and 7X EV/EBITDA ratio on 2023 estimates are seen paying investors sufficiently to wait for transformation benefits, which are estimated at ~$1.5B over time.
Another key point on WRK is that some of BofA's more trusted industry observers recently relayed their observations that WRK’s new management team is in the operational weeds in an attempt to move the company to a common operating model. The takeaway is that there remains a large, realizable opportunity in cost reduction.
Bank of America assigned a price objective of $40 to WestRock.
Shares of WestRock ( WRK ) moved up 0.29% in premarket trading to $30.92. The stock trades below its 100-day and 200-day moving averages.
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WestRock Company lands Buy rating from Bank of America