Goldman Sachs Upgrades MeadWestvaco To Buy, $36 PT

Goldman Sachs has published a research report on MeadWestvaco Corporation MWV and has upgraded the company from Neutral to Buy.

In the report, Goldman Sachs writes "We upgrade MWV to Buy from Neutral and add to the Conviction Buy List. We see 31% potential upside to our new $36 12-month price target, as in our view, MWV's shares do not reflect the fundamental strength of its business or 730,000 acre land portfolio. Paperboard fundamentals have tightened and are expected to be tight through 2013. Operating profits in specialty chemicals have more than doubled since 2009 and appear sustainable. We see MWV's shares re-rating higher as MWV delivers sustainable earnings and free cash flow and as investors begin discounting MWV's land assets in its valuation multiple."

Goldman Sachs has also introduced a $36 price target on MeadWestvaco Corporation, which closed yesterday at $27.83.