Zacks Investment Research downgraded shares of Rock-Tenn Company (RKT) from NEUTRAL to UNDERPERFORM on April 01, 2014, with a target price of $96.00.
Rock-Tenn Company's first-quarter fiscal 2014 earnings increased 23% year over year to $1.66. Going forward, Rock-Tenn will benefit from the Simpson Tacoma Kraft Paper Mill and NPG Holding acquisitions, strong results in the Merchandising Displays and Consumer Packaging segments and further share repurchases. However, inclement weather on the East Coast has had a negative impact of 0.40 per share on earnings in the second quarter of 2014. In addition, higher old corrugated container costs and weak customer demand for containerboard and corrugated containers remain concerns. We, thus initiate our coverage on Rock-Tenn with an Underperform recommendation and a target price of $96.00.
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