Daniel Wright
WestRock Firm (NYSE:WRK) was minimize to Maintain from a previous Purchase at Argus after Q1 earnings missed expectations earlier within the month.
The Atlanta-based firm posted a wider than anticipated loss within the earnings report and withdrew full-year steerage. The inventory’s steep slide following the outcomes was warranted in Argus’ view.
“Primarily based on the weak 1Q outcomes and withdrawn steerage, we’re decreasing our EPS estimates for each this yr and subsequent, and consider {that a} Maintain ranking is now acceptable,” the agency’s analysts wrote on Monday. “We consider that the comparatively low multiples are warranted based mostly on the corporate’s present prospects.”
A $36 worth goal was assigned to the inventory alongside the downgrade. Nonetheless, the agency indicated that the inventory’s long-term prospects seem constructive, leaving the corporate Purchase-rated on a five-year timeline regardless of the Maintain ranking on a 12-month foundation.
Learn the transcript of the corporate’s newest earnings name.
