The downgrade follows Friday night's RISI/Pulp & Paper Week and the publications lowered outlook for containerboard pricing.
WestRock is a Norcross, GA-based packaging company that provides paper and packaging solutions in the consumer and corrugated markets.
"With containerboard pricing declining even more quickly than we had previously anticipated (we believe we were one of the few brokerage firms calling for containerboard prices to fall by 2017) we choose not to keep 'fighting the cycle' with WRK and move it to neutral," BofA/Merrill Lynch said in a note.
The firm lowered its price target on WestRock stock to $48 from $55 today.
Separately, TheStreet Ratings has set a "buy" rating and grade of B- on WestRock stock. This is driven by some important positives, which TheStreet Ratings believes should have a greater impact than any weaknesses and should give investors a better performance opportunity than most stocks it covers.
The company's strengths can be seen in multiple areas, such as its robust revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: WRK