Goldman Sachs Upgrades TIN, Downgrades BZ

According to a recent report from Goldman Sachs, containerboard markets remain tight, despite a slowing US economy. Operating rates are above 95% and are forecasted to stay high through 2012. Demand is steady and absent a recession. Goldman is upgrading Temple Inland TIN to a Buy given EPS leverage to higher containerboard prices, strong free cash flow in 2011 and a compelling valuation at 3.8X 2011 EBITDA estimate. At the same time Goldman is downgrading Boise Inc. BZ to Neutral, as there is less upside to the price target of $8. Goldman remains positive on the fundamentals and earnings outlook. TIN closed Wednesday at $18.45 BZ closed Wednesday at $7.14