UPDATE: Deutsche Bank Downgrades MeadWestvaco to Hold on Strong Performance
In a report published Monday, Deutsche Bank analyst Mark Wilde downgraded the rating on MeadWestvaco (NYSE: MWV) from Buy to Hold, but reiterated the $37.00 price target.
In the report, Wilde noted, “After strong performance in recent weeks, we are downgrading MWV from Buy to Hold. The stock is currently trading at 8.9x our 2013 and 8.2x our 2014 est's on an EV/EBITDA basis. Both are at the upper end of peer group multiples. While we continue to believe that a sum-of-the-parts valuation on MWV is comfortably in the upper $40's, we are not convinced that management and the Board will move to unlock all of that value in the near term. Thus, with the shares near our PT, we find it difficult to argue that investors need to buy the stock now. Downgrading from Buy to Hold.”
MeadWestvaco closed on Friday at $36.67.
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