UBS Maintains a 'Buy' on MeadWestvaco (MWV); Patience Is Required

UBS maintains a 'Buy' on MeadWestvaco (NYSE: MWV) price target cut from $39 to $36.

UBS analyst says, "MWV saw demand weakness in 4Q-particular soft spots included US bleached board for general packaging, high end personal care/beauty in Europe, US home & garden and surprisingly, several businesses in Brazil. Management has taken a cautious approach assuming these trends carry through at least 1H12..."

"Our 1Q estimate is $0.19 vs $0.43 last year. Our new 2012 estimate is $1.80 (was $2.05). We assume weak 1H, with improvement through 2H. Our estimates still include Consumer & Office. MWV will miss their 7-10% earnings growth target in 2012 but we expect recovery/faster growth in 2013-our 2013 estimate is unchanged."

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

Shares of MeadWestvaco closed at $30.73 yesterday.

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