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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
May 4, 2026 9:26 AM

12:00 PM EDT, 05/04/2026 (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 $10 to $42 on an EV/EBITDA of 7.0x our 2026 EBITDA estimate, a discount to the peer average of 9.8x, but above SW's limited trading history average of 7.0x over the past year to reflect synergy target achievements. We cut our 2026 EPS view by $0.73 to $2.30 and cut 2027 EPS by $0.54 to $3.20. Q1 results reflected significant cost inflation, with energy costs increasing by $200M and freight costs increasing by $50M based on the current price outlook for FY 2026. The largest positive was the surge in demand in March and April, with SW selling out of nearly all paper grades near-term and allowing price increases to be realized for Q2 this year. We believe the $50 per ton containerboard increase YTD ($20 in Q1 & $30 in April) will drive revenue higher in 2H 2026, with Europe costs potentially increasing by EUR100 per ton as well. We note that North America volumes were down 7.4% in Q1 with a better outlook for the remainder of FY 2026.

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