Core Viewpoint - Smurfit Westrock Plc (NYSE:SW) is recognized as an attractive investment opportunity, particularly due to its valuation compared to peers and potential for growth in free cash flow and EBITDA [2][3]. Group 1: Investment Ratings and Price Target - UBS initiated coverage on Smurfit Westrock Plc with a Buy rating and a price target of $60, indicating strong investor interest [2]. - The company is currently trading at approximately 6.4x 2026 EV/EBITDA, which is lower than the 8-10x range of competitors like International Paper and Packaging Corporation of America, suggesting it is undervalued [2]. Group 2: Financial Projections - UBS anticipates a 4% increase in U.S. containerboard prices by 2026, which is expected to support a 10% increase in EBITDA [2]. - The potential for free cash flow is projected to increase by 230% [2]. Group 3: Historical Performance and Future Synergies - Smurfit Westrock has a strong history of returns on invested capital, averaging 14.7% over the past decade, which may help narrow the valuation gap with peers [3]. - UBS projects that synergy gains could exceed $800 million by 2030, indicating significant operational efficiencies [3]. Group 4: Company Overview - Smurfit Westrock operates globally, producing and selling consumer packaging, corrugated containers, containerboard, and paper-based solutions across North America, Europe, and other international markets [4].
UBS Initiates Coverage on Smurfit Westrock Plc (SW) with Buy Rating and $60 Price Target