Assessing WestRock: Insights From 4 Financial Analysts
Analysts' ratings for WestRock (NYSE:WRK) over the last quarter vary from bullish to bearish, as provided by 4 analysts.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 0 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 2 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts have recently evaluated WestRock and provided 12-month price targets. The average target is $54.0, accompanied by a high estimate of $57.00 and a low estimate of $51.00. This upward trend is apparent, with the current average reflecting a 14.29% increase from the previous average price target of $47.25.
Decoding Analyst Ratings: A Detailed Look
In examining recent analyst actions, we gain insights into how financial experts perceive WestRock. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Michael Roxland | Truist Securities | Raises | Hold | $57.00 | $51.00 |
| Michael Roxland | Truist Securities | Raises | Hold | $51.00 | $42.00 |
| David Coleman | Argus Research | Raises | Buy | $57.00 | $50.00 |
| Gabe Hajde | Wells Fargo | Raises | Equal-Weight | $51.00 | $46.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to WestRock. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of WestRock compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for WestRock's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of WestRock's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on WestRock analyst ratings.
Discovering WestRock: A Closer Look
WestRock manufactures corrugated packaging and consumer packaging, such as folding cartons and paperboard. After the merger of RockTenn and MeadWestvaco in fall 2015, WestRock became the largest North American producer of solid bleached sulfate and the second-largest producer of containerboard, which is used in the production of shipping containers.
A Deep Dive into WestRock's Financials
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Negative Revenue Trend: Examining WestRock's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -10.44% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 0.33%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): WestRock's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.15%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): WestRock's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.06%, the company may face hurdles in achieving optimal financial returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.9.
Analyst Ratings: Simplified
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.