Smurfit-Stone Initiated With Buy Rating By Goldman Sachs

Goldman Sachs has published a research report on Smurfit-Stone Container Corporation SSCC and has initiated coverage on the company with a Buy rating. In the report, Goldman Sachs writes "We initiate coverage of Smurfit Stone Container Corp. (SSCC) with a Buy rating and see a 14% upside to our $28 per share 12-month target price. SSCC provides the most EPS leverage to our constructive (and more bullish than consensus) outlook for container board prices. Although a higher cost producer, SSCC has potential to narrow the margin gap versus its peers as it realizes benefits of headcount reduction and capacity closures. We see strong and above consensus EBITDA and EPS growth through 2012. We find SSCC's valuation and balance sheet compelling at a 14% FCF yield on 2011 estimates and only 1.7X net debt/LTM EBITDA." Goldman Sachs has also issued a $28 price target on Smurfit-Stone Container Corporation, which clsoed Friday at $24.55.