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Smurfit Westrock Positioned for Growth: Buy Rating Amid Strategic Initiatives and Expected Synergies

Smurfit Westrock Positioned for Growth: Buy Rating Amid Strategic Initiatives and Expected Synergies

Patrick Mann, an analyst from Bank of America Securities, reiterated the Buy rating on Smurfit Westrock (SWResearch Report). The associated price target is $63.00.

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Patrick Mann has given his Buy rating due to a combination of factors that suggest Smurfit Westrock is positioned for growth. Despite a slight drop in Q4 performance compared to expectations, the company’s strategic initiatives, including projected synergies and a focus on enhancing value over volume, indicate potential for improved margins and returns. Mann points out that the expected synergies of $400 million by 2025 and additional value opportunities are pivotal in enhancing the company’s financial outlook.
Furthermore, Mann anticipates that Smurfit Westrock’s operational improvements and commercial focus will lead to a re-rating and a narrowing discount to its peers over time. The announced price increases in containerboard in both the US and Europe are expected to bolster EBITDA growth from Q2 2025 onwards. However, Mann does note that potential tariffs could pose a risk to the company’s operations in Latin America, which should be monitored closely.

According to TipRanks, Mann is ranked #7290 out of 9369 analysts.

In another report released today, Barclays also maintained a Buy rating on the stock with a £54.50 price target.

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