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UBS Maintains a 'Buy' on Buckeye Technologies (BKI); Stronger Wood Specialty Part Offset by Fluff

October 27, 2011 1:43 PM EDT
BKI Hot Sheet
Rating Summary:
    3 Buy, 2 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 18 | Down: 7 | New: 23
UBS maintains a 'Buy' on Buckeye Technologies (NYSE: BKI) price target of $32.00.

UBS analyst says, "BKI earned $0.74 in 1Q FY12. This was ahead of their prior guidance of $0.65-0.68 and UBSe/consensus $0.67. They earned $0.68 in 4Q10 and $0.34 last year. Tax rate was a key contributor of upside. But overall quality was fairly good with Specialty Fibers stronger than expected (more than offsetting weakness in Nonwovens)."

"BKI expects wood specialty prices to rise double-digits in calendar 2012; we believe at least half their contracts are already finalized. This is stronger than we had expected. We are raising our FY 2012 est to $2.95 from $2.80 with higher wood specialty prices partially offset by a more conservative fluff pulp outlook. Our new 2Q est is $0.65 (guidance is $0.64-0.67)."

For more ratings news on Buckeye Technologies click here and for the rating history of Buckeye Technologies click here.

Shares of Buckeye Technologies closed at $28.39 yesterday, with a 52 week range of $15.26-$29.45.


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