UPDATE - UBS Downgraded Buckeye Technologies (BKI) to Neutral; Next Span of Earning Growth Could Take Time

UPDATE - UBS downgraded Buckeye Technologies (NYSE: BKI) from Buy to Neutral, price target raised $1 to $36.00.

UBS analyst said, "We believe high-end dissolving pulp prices are at peak. We expect a bit of incremental weak ness in fluff. To drive further earnings growth BKI needs to deliver on Nonwovens profit improvement, the Foley conversion project and/or find attractive investments. These will take time. BKI has flexibility. Net debt is ~$51mm. The sales/closures of Americana, Merfin and Delta should bring in ~$60mm cash to be partially offset by $13mm net drag from fuel tax credits."

"Given recent strong share performance and expected slower earnings growth, we are downgrading BKI to Neutral."

To see more ratings on BKI, Click Here

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