Imperial Capital Boosts PT on Clearwater Paper (CLW) to $64, Maintains Bullish View

March 6, 2013 12:35 PM EST Send to a Friend
Get Alerts CLW Hot Sheet
Price: $66.57 -3.45%

Rating Summary:
    1 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 18 | New: 41
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Imperial Capital raised its price target on Outperform-rated Clearwater Paper (NYSE: CLW) to $64 from its prior target of $55.50 at the midpoint.

"We estimate run-rate 2H13 "simple" free cash flow, based on maintenance capital of $50mn, of $188mn, or about 15% of its recent equity market capitalization," analyst Kevin Cohen said. "This should improve further per the company's objective of generating at least $300mn of EBITDA in 2014 as the full benefits of its new tissue machine ramp-up are realized."

The $100mn share repurchase program helps to create a quasi-floor value on the stock. Also, the event-driven situation at tissue/paper concern Wausau Paper (NYSE: WPP) could cause roughly 10% valuation discount at Clearwater Paper to narrow over the short-term. "We believe Wausau's largest shareholder, at the company’s annual general meeting (AGM) on 4/18/13, is likely to succeed in its effort to appoint its slate of newly proposed members of the board such that it will be positioned to execute on its stated intention of launching a "full strategic alternative review process."

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

Shares of Clearwater Paper closed at $48.77 yesterday.


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