UPDATE: Deutsche Bank Downgrades Rock-Tenn on Mixed Factors

In a report published Thursday, Deutsche Bank analyst Mark Wilde downgraded Rock-Tenn (NYSE: RKT) from Buy to Hold, but raised the price target from $112.00 to $120.00.

In the report, Deutsche Bank noted, “After a tough year #1, they're making sustained progress. We like RKT's management team & believe RKT can eliminate much of the margin gap & raise EBITDA margins in its containerboard/corrugated business. However, at current stock price levels, we think a lot of good news is ‘priced-in'. Three near-term risks: (1) a spike in input costs with lagged offsetting price gains, (2) further signs of incremental supply entering the market, and (3) strengthening US$. Downgrade from Buy to Hold on valuation. Raising PT to $120.”

Rock-Tenn closed on Wednesday at $114.27.