Loading...
Back to narrative

SW: Rising Margins And Index Inclusion Will Support Future Upside Potential

Integration Risks Will Dim Packaging Outlook But Spur Savings

SW logo
SW
AnalystLowTarget
Not Invested
Published 19 Apr 2025

Update shared on 15 Dec 2025

Fair value Decreased 1.11%
Previous
n/a
n/a
AnalystLowTarget's Fair Value
n/a
Loading
1Y
-30.4%
7D
6.3%

Analysts have trimmed their price target for Smurfit Westrock by 0.50 dollars to 44.50 dollars, citing lower long term revenue growth expectations, partially offset by improved profit margin forecasts and a reduced future earnings multiple.

What's in the News

  • Smurfit Westrock Plc recorded impairment charges of 58 million dollars for the three months ended September 30, 2025, compared with 2 million dollars recorded a year earlier (company filing)
  • Smurfit Westrock Plc (ticker: SW) was added to the FTSE All World Index (USD), expanding its presence in global equity benchmarks (index announcement)
  • Smurfit Westrock Plc (ticker: SWR) was simultaneously dropped from the FTSE All World Index (USD) on the London Stock Exchange, reflecting changes in index constituent listings following its cross market structure (index announcement)

Valuation Changes

  • The fair value estimate was lowered slightly to $44.50 from $45.00, reflecting modestly weaker long term assumptions.
  • The discount rate rose moderately to 8.44 percent from 7.95 percent, implying a higher required return for investors.
  • The revenue growth forecast was reduced significantly to about 1.47 percent from 7.27 percent, indicating a more cautious long term outlook for sales expansion.
  • The net profit margin expectation increased to about 6.55 percent from 5.76 percent, pointing to improved anticipated profitability.
  • The future P/E multiple was cut markedly to about 13.9x from 19.6x, signaling a lower valuation being applied to projected earnings.

Have other thoughts on Smurfit Westrock?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.