UPDATE: Jefferies Initiates Coverage on USG Corporation on Positive Outlook
In a report published Thursday, Jefferies analyst Philip Ng initiated coverage on USG Corporation (NYSE: USG) 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.
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