Barclays Maintains an 'Equalweight' on Temple-Inland (TIN); 2Q Results in Line as IP Tender Date Nears

Barclays maintains an 'Equalweight' on Temple-Inland Inc. (NYSE: TIN) price target of $24.

Barclays analyst says, "We maintain our standalone PT at $24. Importantly, our target does not reflect the pending bid from International Paper (NYSE: IP) for $30.60 per share. We maintain our view that IP will eventually need to pay 75% to 100% of the capitalized value of synergies which we estimate to be $12 to $16 per share. Thus, assuming a successful combo with IP, we estimate a share price as high as $36 to $40 per share. There is limited visibility of next steps, beyond the upcoming expiration of IP's tender on August 9. At a minimum, we believe IP is likely to extend the date of the tender offer, especially since TIN shares currently trade higher than the $30.60 bid. Given that shares of TIN trade above IP's offer, we would not be surprised to see the bid eventually increased."

"We are fine-tuning our 3Q11/4Q11 EPS estimates from $0.36/$0.20 to $0.30/$0.20. We are fine-tuning our full-year 2011 estimate from $0.95 to $0.93. We are fine tuning our 2012/2013 EPS estimates from $1.40/$2.05 to $1.35/$2.00."
For more ratings news on Temple-Inland Inc. click here and for the rating history of Temple-Inland Inc. click here.

Shares of Temple-Inland Inc. closed at $30.94 yesterday.

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