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UPDATE: Goldman Sachs Downgrades MeadWestvaco to Neutral On SBS Pricing Outlook

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Goldman Sachs reduced its rating on MeadWestvaco (NYSE: MWV) from Buy to Neutral and lowered its price target from $33 to $30.

Goldman Sachs commented, "We downgrade MeadWestvaco (MWV) to Neutral, as we have lowered our bleached board (SBS) price forecast and EPS estimates for MWV, and now our 2013 MWV EPS estimates are 3% below consensus. We have lowered our SBS price forecasts to reflect the recent market trend, declining backlog levels, and significant capacity coming on line in Asia. While we continue to like MWV's strong balance sheet and dividend yield and see solid upside to the stock's sum-of-the-parts valuation, we are now Neutral rated on shares, as the shares trade at 7.1X our 2013 EBITDA estimates vs. the five- year average of 6.5X.

MeadWestvaco closed at $31.20 on Thursday.

Latest Ratings for MWV

DateFirmActionFromTo
Sep 2014BMO CapitalInitiates Coverage onMarket Perform
Jul 2014UBSDowngradesNeutralSell
Jun 2014KeyBancInitiates Coverage onBuy

View More Analyst Ratings for MWV
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

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