Canaccord Genuity Reiterates a 'Buy' on ABITIBIBOWATER (ABH); Weaker-than-Expected Q1/11 Results; Lowering Outlook

Canaccord Genuity reiterates a 'Buy' on ABITIBIBOWATER Inc. (NYSE: ABH), PT lowered by $2 to $34.

Canaccord analyst says, "We reiterate our recommendation following the release of AbitibiBowater’s Q1/11 results. AbitibiBowater’s Q1/11 results were below expectations; however, in our view, the results were better than the headline number suggests. While we still view the results as slightly negative due to the miss despite all the extraordinary items, we believe the results demonstrate the significant progress the company has made from its restructuring. We remain of the view that AbitibiBowater will be able to demonstrate further cost savings and positive earnings growth."

"We have revised our estimates downward slightly following the results and conference call. Our new 2011 EBITDA estimate is US$497 million, and our 2012 estimate is now US$681 million."

For more ratings news on ABITIBIBOWATER Inc. click here and for the rating history of ABITIBIBOWATER Inc. click here.

Shares of ABITIBIBOWATER Inc. closed at $24.60 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Goldman Sachs on Meta Platforms Inc. (META): 'We expect investors to have an initial negative reaction'
• Alamos Gold (AGI) Misses Q1 EPS by 1c
• RBC Capital Comments on Meta Platforms Inc. (META) Earnings