UPDATE: JP Morgan Lowers PT to $9.50 on Boise Concerning Containerboard Price Increase

In a report published Tuesday, JP Morgan maintained its Neutral rating on Boise BZ and lowered the price target to $9.50 from $10. JP Morgan reported that, “We believe the primary downside risks to our Neutral rating include: (1) additional and cost inflation, particularly around wood fiber or chemicals, (2) a slower-than-expected macroeconomic environment, which could pressure containerboard and UCFS volumes and prices, (3) if its current discount to peers widens, and (4) execution risk involved with any M&A activity it pursues, including paying too high of a multiple on any potential upcoming deal.” Boise shares closed at $8.31 on Tuesday.