BMO Capital Markets Raises 2010, 2011 Estimates On MeadWestvaco (MWV)
BMO Capital Markets is raising earnings estimates on MeadWestvaco (NYSE: MWV) for 2010 and 2011 after the company reported strong earnings results yesterday. BMO has a Market Perform rating and a $26.50 price target on shares.
In the report, BMO writes, "We are increasing our forecasts to reflect: strong order backlogs of 5-6 weeks for Solid Bleached Sulphate and Coated Natural Kraft supporting the second price increase of $50/ton announced for Q3; continuing strong demand for specialty chemicals and carbon technologies for asphalt, oilfield and automotive applications; and expected increased demand in back-to-school activity within the Consumer & Office Products. We also expect wood costs in the U.S. South to decrease in H2/10."
In Friday trading, shares of MeadWestvaco are down 14 cents to $23.78.
