Goldman Sachs raised their EPS estimates and price target on USG Corp. (NYSE:USG), saying they see the company focusing on increasing margins rather than sales volume in 2011.
They responded by increasing their EPS estimates for full year 2011 and full year 2012 from $1.74 and $0.25 to $1.53 and $0.19, based on stronger pricing power.
Also noted was the reduction in operation costs by the company. Consequently, stronger margins should be sustainable.
Goldman maintains a "Neutral" rating on USG, which closed Thursday at $16.75, down $0.50, or 2.90 percent. Goldman raised their price target on USG from $11 to $12.50.
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