UPDATE: Jefferies Initiates Coverage on USG Corporation with Buy Rating, $34 PT on Positive Outlook

In a report published Thursday, Jefferies analyst Philip Ng initiated coverage on

with a Buy rating and $34.00 price target. In the report, Jefferies noted, “We are initiating coverage on USG with a Buy, driven by our positive view on the industry dynamics of wallboard and ceilings. Benefiting from its cost takeout and pricing power, incremental margins in wallboard are at 60% and should reaccelerate earnings. Further, with FCF conversion at 100%, we believe USG should be able to unlock shareholder value.” USG Corporation closed on Wednesday at $27.73.