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Ireland-based Smurfit Westrock Plc (SW) specializes in manufacturing, distributing, and selling containerboard, corrugated containers, and other paper-based packaging solutions. Valued at $26.9 billion by market cap, the company operates across Europe, North America, South America, and the Asia-Pacific region.

The packaging company has significantly outperformed the broader market over the past month. SW stock has surged 24.5% over the past month, compared to the S&P 500 Index’s ($SPX) 6.1% rally during the same time frame.

Zooming in further, SW has also surpassed the Consumer Discretionary Select Sector SPDR ETF’s (XLY) 17.6% returns over the past three months.

On Oct. 30, SW popped 12% after releasing its stellar Q3 earnings. Its net sales grew 62% from the year-ago quarter to $7.7 billion, and adjusted EBITDA rose 141% year over year to $1.3 billion.

For the current fiscal year, ending in December, analysts expect Smurfit Westrock’s EPS to drop by 11.3% year over year to $2.68. The company’s earnings surprise history is mixed. It surpassed the consensus EPS projections in only one of the past four quarters while missing the projections on three other occasions.

Among the 13 analysts covering the SW stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, two “Moderate Buy,” and three “Holds.”

This configuration is slightly more bullish than a month ago when seven analysts recommended a “Strong Buy” rating.

On Jul. 31, RBC Capital analyst Matt McKellar maintained a “Buy” rating on Smurfit Westrock and set a price target of $58.

SW’s mean price target of $59.95 represents a premium of 12.2% from current price levels. The Street-high target of $66 indicates a potential upside of 23.5%.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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