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Research Alert: CFRA Maintains Hold Opinion On Shares Of Smurfit Westrock Plc
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Smurfit Westrock Plc
Nov 1, 2025 4:09 PM

06:45 PM EDT, 11/01/2025 (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 lower our 12-month target by $12 to $39, on an EV/EBITDA of 5.8x our 2026 EBITDA estimate, a discount to peers at an average of 7.9x, and below SW's limited trading history average of 6.7x. We cut our 2025 EPS view by $0.54 to $2.37 and lower 2026 EPS by $0.22 to $3.49. Our 2027 EPS view is initiated at $4.11. SW delivered solid Q3 2025 results, with net sales of $8.0B (+4.3% Y/Y, +1.4% vs consensus) and adjusted EBITDA of $1.3B (+2.9% Y/Y, -1.2% vs consensus) at a 16.3% margin (+10 bps Y/Y). Management reduced full-year adjusted EBITDA guidance to $4.9B-$5.1B from $5.0B-$5.2B, expecting additional Q4 downtime amid demand weakness. Cash generation surged, with operating cash flow jumping to $1.1B from $320M and adjusted free cash flow rising to $579M from $118M. We expect headwinds from rising inventory-to-shipments ratios for consumer goods manufacturers and unsustainable consumer spending patterns that risk demand corrections.

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