Core Viewpoint - Seaport Global Securities upgraded Smurfit Westrock from Neutral to Buy, citing an attractive valuation and improved sentiment in the European containerboard market [1][2] Group 1: Upgrade and Valuation - Smurfit Westrock's stock was upgraded to Buy with a price target of $52.00, reflecting a shift in analyst sentiment [1] - The stock is currently trading at approximately 6.3 times its 2026 EBITDA forecast, which is competitive compared to the consensus estimate of about 6.2 times [2] Group 2: Market Sentiment and Capacity - Analysts expect sentiment regarding European containerboard pricing to improve as capacity closures increase due to weak profitability [2] - The company had previously faced caution from analysts due to its higher exposure to the European market, where new containerboard capacity was anticipated [1] Group 3: Strategic Roadmap - A potential re-rating of the stock is anticipated when the company reveals its five-year strategic roadmap in February, which will outline operational goals through 2030 [3] - The strategic plan is expected to elaborate on $400 million in synergy targets and address asset repositioning, cost reductions, and capital expenditure needs, particularly in the SBS business [3]
Seaport Global Upgrades Smurfit Westrock To Buy, Sets Price Target At $52