In today’s briefing:
- WestRock Company: Mill Closure
- HWKN: Sales Mix Change Is a PT Change, Now $96
WestRock Company: Mill Closure
- WestRock Company, in the 3rd Fiscal Quarter 2023, posted a net sales of $5.1 billion, with an adjusted EBITDA of $802 million, higher than expected due to strong execution, productivity gains, and moderating input costs.
- CEO David Sewell attributed the strong results to the firm’s resilience and the hard work of its team, even as they faced comparisons with record results from the prior year quarter.
- However, certain challenges were also observed.
HWKN: Sales Mix Change Is a PT Change, Now $96
- HWKN is entering fiscal 2025 (March) with a business model that is changing from its historical norms. The revenue mix is changing in fiscal 2025.
- This change should lead to HWKN receiving a higher valuation in the market than it has historically received since the water treatment business is very different from HWKN’s industrial business
- A higher earnings profile for HWKN and earnings continuing to grow in fiscals 2025 and 2026 leads us to raise our price target to $96 from $74
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