BMO Capital Markets Raises 2010, 2011 Estimates On MeadWestvaco (MWV)

BMO Capital Markets is raising earnings estimates on MeadWestvaco MWV for 2010 and 2011 after the company reported strong earnings results yesterday. BMO has a Market Perform rating and a $26.50 price target on shares. In the report, BMO writes, "We are increasing our forecasts to reflect: strong order backlogs of 5-6 weeks for Solid Bleached Sulphate and Coated Natural Kraft supporting the second price increase of $50/ton announced for Q3; continuing strong demand for specialty chemicals and carbon technologies for asphalt, oilfield and automotive applications; and expected increased demand in back-to-school activity within the Consumer & Office Products. We also expect wood costs in the U.S. South to decrease in H2/10." In Friday trading, shares of MeadWestvaco are down 14 cents to $23.78.