UPDATE: Deutsche Bank Lowers PT on MeadWestvaco to $34

Deutsche Bank has published a research report on MeadWestvaco

and has lowered the price target from $38 to $34 after the company reported near-term demand weakness. In the report, Deutsche Bank writes, "MWV's businesses tend to be relatively stable. Rigesa expansion project could begin boosting earnings by late 2012. MWV's balance sheet is strong, its pension remains over-funded, and MWV has significant value in its ~700K acres of southern timberland. Underlying 4Q = $0.26/share. DB @ $0.23. Consensus = $0.25. 4Q segment operating income = $157MM. DB est = $156MM. MWV had recently cut the guidance range to $150-160MM. Bottom-line? MWV is seeing broad-based slowing in most pkg end mkts. In Packaging Resources, EBIT = $37MM, -$65MM q/q & -$27MM y/y. Key issue was $50MM outages in the qtr, with ~$33MM market related in SBS. Consumer Solutions performance was a bit disappointing. Chemical EBIT is off mid-yr peak, but still quite healthy." Deutsche Bank maintains its Buy rating on MeadWestvaco, which is currently trading down $0.22 from yesterday's $30.48 closing price.