J.P. Morgan Upgrades Rating, Lowers PT To $80 On RKT

J.P. Morgan has upgraded its rating from Neutral to Overweight and has lowered its price target from $81 to $80 on Rock-Tenn RKT, citing the stocks favorability. In the report, J.P. Morgan writes, “While we have always considered the RKT/SSCC story to be compelling, our primary concern has been the corresponding high expectations. However, following the recent cuts to consensus and the decline in RKT shares, we believe that the bar has been sufficiently lowered, such that near-term risks are mostly priced in, while the long-term outlook for SSCC accretion remains favorable. While containerboard is not our favorite grade, particularly given recent industry capacity additions, we do like the upside potential for RKT from deal accretion and any potential price increases that are now not expected until calendar 2012. We upgrade to OW from N, with an $80 December 2012 PT.” RKT closed at $61.25 yesterday.