12:15 PM EDT, 05/03/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $14 to $53, which assumes an EV/EBITDA multiple of 6.7x our FY 25 (Sep.) EBITDA estimate, a premium to WRK's three-year average forward EV/EBITDA of 6.1x but a discount to peers, which are trading at an average forward EV/EBITDA of 8.0x. We raise our FY 24 EPS estimate by $0.09 to $2.15 and our FY 25 EPS forecast by $0.84 to $3.40. WRK posted FQ2 adj. EPS of $0.39 vs. $0.77, $0.10 above consensus, with sales that missed consensus by 1%. One of the major highlights from FQ2 is the significant cost savings achieved with self-help efficiency programs; $370 million in cost savings have been achieved YTD and WRK should easily exceed its previous guidance of $300-$400 million in savings. Unfortunately, the cost savings of $164 million Y/Y during FQ2 didn't fully offset the $257 million Y/Y headwind from unfavorable price/mix and adj. EBITDA fell 22% Y/Y to $618 million. We are encouraged by positive momentum in corrugated box shipments, improving to 3.3% Y/Y growth in March.