Seaport Global Securities upgraded Smurfit Westrock (NYSE: SW) from Neutral to Buy, assigning a price target of $52.00.
The firm said it had previously been cautious on Smurfit Westrock due to its higher exposure to the European market, where significant new containerboard capacity was expected over the next two years. However, analysts noted that the stock’s 20% year-to-date decline suggested that investor sentiment had already factored in these risks.
Seaport Global said the stock was now trading at an attractive valuation of about 6.3x its 2026 EBITDA forecast, compared with approximately 6.2x on consensus estimates. The firm expected sentiment on European containerboard pricing to improve as capacity closures accelerated amid weak profitability.
Analysts also anticipated a potential re-rating once the company unveils its five-year strategic roadmap in February, outlining operational goals through 2030. The plan was expected to expand on $400 million in synergy targets and detail asset repositioning, cost reductions, and capital expenditure needs, particularly in the SBS business.
