UBS Maintains a 'Neutral' on Buckeye Technologies (BKI); Good 3Q but Expect Momentum to Stall

UBS maintains a 'Neutral' on Buckeye Technologies (NYSE: BKI), PT increased by $1 to $29.

UBS analyst says, "BKI earned $0.71 in 3Q11-a record level...Next few quarters should remain strong With wood specialty pricing locked in until year-end calendar 2011 we assume fairly steady earnings the next few quarters. Our 4Q estimate is essentially unchanged. But, looking out to calendar 2012 we see risk to wood specialty pricing given material capacity entering the market. We assume improved cotton availability affects demand. We also expect pressure to build in commodity pulp markets, affecting fluff pulp prices. Full ramp up of the Foley energy project is a partial offset, but we expect earnings to turn down modestly starting middle of FY 2012."

For more ratings news on Buckeye Technologies click here and for the rating history of Buckeye Technologies click here.

Shares of Buckeye Technologies closed at $26.95 yesterday.

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