USG Should Have Some Cash On Hand To Return To Shareholders In The Near Future

Macquarie provided its outlook on USG Corporation USG, maintaining its Outperform rating and $35 price target.

"We have covered USG for many years and we have viewed USG's brand and innovation as best-in-class in the wallboard industry despite the commoditized nature of the product," wrote the analysts, noting they expect share gains from new customers will offset lost share at L&W longer term as a result.

According to the analysts, with the sale of L&W and subsequent planned reduction of debt, the company will likely be in position to return capital to shareholders in the near future. While management didn't specify what measures it would take to return capital, the analysts believe initiating a dividend and share repo should be top priorities.