UPDATE: Bank of America Raises PT on MeadWestvaco on Rising Peer Valuations

In a report published Friday, Bank of America analyst George L. Staphos reiterated a Buy rating on MeadWestvaco Corp. MWV, and raised the price target from $37.00 to $40.00. In the report, Staphos noted, “Given rising peer valuations and other factors, we adjust our valuation methodology for MeadWestvaco (B-1-7; $37.63), rated Buy. For our MWV valuation, we increase multiples by 1-2x on its quality assets (mixture of board, packaging and timberland), sum-of-the-parts value (~$45), attractive yield, and potential for growth. We also lowered our cost of equity to 12% from 13%. Our new price objective is $40 (was $37).” MeadWestvaco Corp. closed on Thursday at $37.75.