UPDATE: J.P. Morgan Upgrades USG to Overweight
According to J.P. Morgan, USG Corp (NYSE: USG) is upgraded to Overweight.
J.P. Morgan said that following its broad based channel check that compellingly points to a material portion of the company's 35% Jan. 1st gypsum wallboard price increase having passed through, it raises its rating on USG Corp. to Overweight from Neutral. “Finally, given our view that the apparent success of the price increase will improve the clarity and shorten the timeframe needed to reach our mid-cycle EBITDA estimate of $500 million from 3 years to 2 years, as well as our outlook for slightly lower net debt at mid-cycle and use of a lower discount rate, we raise our Dec. 2012 price target to $18.50 from $12.50, which represents a 35% upside potential from current levels and hence supports our Overweight rating.”
USG closed yesterday at $13.66.
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