TIN's Net Debt Levels to Decline by the End of 2010
Analysts at Goldman Sachs maintain their “buy” rating on Temple-Inland Inc (NYSE: TIN), while raising their estimates for the company. The target price for TIN has been raised from $21 to $22.
According to Goldman Sachs, containerboard prices will rise in early 2010 to $50 per ton, as compared to the earlier estimate of $40 per ton. TIN, being highly leveraged to containerboard prices will benefit in 2010 from the price hike as well as capacity reduction in the industry, robust export markets and low inventory levels, Goldman Sachs adds.
Temple-Inland Inc’s net debt levels are expected to decline by the end of 2010. The analysts at Goldman Sachs consider TIN’s free cash profile as attractive. Goldman Sachs has raised its EPS estimates for 2010 and 2011 from $1.00 to $1.30 and from $1.55 to $1.60, respectively.
