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Citi raised its rating on WestRock Company (NYSE:WRK) to Buy on Monday after a data release revealed March Containerboard prices were flat in contrast to an expected decline.
“While industry challenges remain, there appears to be some stabilization in market conditions after 4 consecutive months of price declines,” equity analyst Anthony Pettinari told clients. “With updated estimates and very conservative assumptions we upgrade WRK to Buy.”
He noted that the stock has sold off sharply in 2023, leaving more upside than downside ahead. Additionally, Pettinari noted that noisy periods such as the start of 2023 “have historically been good entry points for beaten-up cyclicals” like WestRock (WRK).
Shares of WestRock rose 2.7% in premarket trading on Monday.
Read more on why SeekingAlpha contributor Weighing Machine also sees opportunity ahead for WestRock.
Image and article originally from seekingalpha.com. Read the original article here.