UPDATE: D.A. Davidson Upgrades Rock-Tenn Following Buying Opportunity from Share Price Decline

In a report published Thursday, D.A. Davidson & Co. analyst Steven Chercover upgraded the rating on Rock-Tenn Company (NYSE: RKT) from Neutral to Buy, and reiterated the $120.00 price target.

In the report, D.A. Davidson & Co. noted, “Following the Q3-13 blowout results, it became apparent that RockTenn management had begun to reconcile operational issues related to the integration of Smurfit-Stone. We had no doubt that management would get the job done, and now the operational leverage within the company is beginning to come to fruition given the significant year-over-year Corrugated Packaging EBITDA margin expansion (600bp) and strong results of from operations in the previous quarter. We think RockTenn is the leveraged way to play the containerboard space.”

Rock-Tenn Company closed on Wednesday at $100.01.