Smurfit Westrock initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Brian Morgan initiated coverage of Smurfit Westrock (SW) with an Overweight rating and $60 price target. The firm is positive on the company’s combination with Westrock delivering cyclical earnings growth and achievement of synergies estimated to accrete 8% to EBITDA, the analyst tells investors in a research note. Two weeks into trading as a combined entity, Smurfit Westrock also trades on a 20% discount to International Paper (IP) and a 70% discount to Packaging Corp (PKG), Morgan Stanley added.