Goldman Sachs Raises Numbers on USG (UGS), But Keeps "Sell" Rating

Goldman Sachs raised estimates and its price target on USG Corp. (NYSE: USG) from $7 to $8 following Q4 results, but is keeping their Sell rating.

The firm increased 2012-2014 estimates to reflect better pricing.

Goldman maintained their Sell rating as they expects the shares to return to underperformance versus the group. Shares are up 51% YTD on momentum in wallboard pricing and expectations of a housing recovery. They expects 2012 housing activity to remain flattish and do not see a step-function improvement. On pricing, said the elimination of job quotes and the preliminary response to recent
pricing actions are positive. However, they "remain conservative in our expectation for effective price realization given the variability around legacy job quotes, industry overcapacity, and the uneven nature of geographic demand."

The firm does not expect profitability in 2012 and notes USG has the highest leverage in their coverage universe.

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

Shares of USG Corp. closed at $15.36 yesterday.

---

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

---

You May Also Be Interested In

• JPMorgan Downgrades Limbach Holdings (LMB) to Underweight
• TD Cowen Starts Lakefront Biotherapeutics (LKFT) at Buy
• Citi upgrades O-I Glass to Buy with $9 price target, opens 90-Day upside catalyst watch