Buy - Price 45 on July 28
by Deutsche Bank

[RKT reported] fiscal-3Q EPS of $2.24, pointing to $1.44 net of special items (mostly alternative-fuel tax credits)....Comparisons: F2Q09 $1.02, F3Q08, 70 cents...impressive, considering that average paperboard prices fell $22/ton quarter/quarter; industry costs rose...lags between paperboard prices and converted-products prices likely boosted margins. Consumer-packaging had another record quarter, with earnings before interest and taxes [Ebit] of $50.3 million...corrugated packaging was also impressive, with... Ebit of $49.6 million....This was a record quarter for RKT ...Current price/cost trends suggest margins will compress. Market cap: $1.6 billion.

From a recent Mad Money show:"The packaging business has turned into a little bit of nightmare. I say don't buy; there's just not enough economic demand to drive their growth."

From a recent Mad Money show:"The packaging business has turned into a little bit of nightmare. I say don't buy; there's just not enough economic demand to drive their growth."

Rock-Tenn (RKT) was upgraded from Neutral to Overweight, JP Morgan said. Estimtaes also raised, as the Southern Container acquisition should add to earnings.

up

Upgraded by Deutsche Securities from Hold to Buy

Upgraded by Credit Suisse from Underperform to Neutral

Downgraded by Credit Suisse from Neutral to Underperform

speculative

Cabot

something smells funny