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Deutsche Cuts Price Target on MeadWestvaco (MWV), Reiterates Positive Stance

January 27, 2012 11:49 AM EST
MWV Hot Sheet
Rating Summary:
    9 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 9 | New: 35
Deutsche Bank is reaffirming its Buy rating on shares MeadWestvaco (NYSE: MWV), but is reducing its price target from $38 to $34 due to weak near-term demand in key packaging end markets.

The company reported its Q4 results relatively inline with expectations, but reduced its outlook for fiscal 2012. The firm highlights MWV still has a solid balance sheet and that its businesses have been relatively stable in the past.

To go inline with the company's new guidance, the firm has lowered its Q1 and FY12 EPS estimates from $0.35 and $1.80 to $0.21 and $1.45. Deutsche also cut its FY13 estimate from $2.00 to $1.80.

An analyst at Deutsche highlights some positives with the company, "Rigesa expansion project could begin boosting earnings by late 2012. MWV's balance sheet is strong, its pension remains over-funded, and MWV has significant value in its ~700K acres of southern timberland."

For an analyst ratings summary and ratings history on MeadWestvaco click here. For more ratings news on MeadWestvaco click here.

Shares of MeadWestvaco closed at $30.48 yesterday, with a 52 week range of $22.75-$34.51.


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