) to buy from hold.
Analyst Mark Wilde says there are two key issues to his upgrade. Pricing in most of the company's markets are improving and the company is actively marketing its remaining 400,000 acres of southern U.S. timberlands - a process which could generate $300 million.
He thinks better pricing and a big timberland sale could provide a signficant cash boost to debt reduction. he puts a $40 price target on Bowater shares.
Wilde equates to 1.5 times book value and 6.7 times his 2006 EBITDA estimate. He says this is in-line with a group average on price/book basis, only slightly higher than average on an EBITDA basis.