Georgia-Pacific Price Hikes Shouldn't Hurt IP, WY, OI & PKG
November 23, 2009 4:42 PM
Bank of America Merrill Lynch maintained its recommendations on several pulp and paper stocks following announced raw materials price hikes from key industry supplier Georgia-Pacific.
B of A/ML said in a research report that the just-announced price increases ($50 per ton on the east coast on linerboard and medium; $70 per ton for the west coast) are in line with current market conditions, and have been expected within the industry.
Additionally, Georgia-Pacific’s price hikes follow those of Longview Fibre, which announced a $50 per ton increase, mainly for its customers on the west coast.
Following Georgia-Pacific’s announcement, B of A ML maintained its recommendations on several major pulp and paper stocks. These include International Paper (NYSE: IP) and Weyerhaeuser (NYSE: WY), both rated Neutral, and Owens-Illinois (NYSE: OI) and Packaging Corp. of America (NYSE: PKG), which stand at Buy.
