Ahead Of The Bell: Analyst Ups Grief Price Target

HARTFORD, Conn. (AP) — Greif Inc. is poised for a higher profit in 2010 following cost-cutting this year, an analyst said Tuesday as he raised his price target for the industrial packaging products manufacturer by nearly 10 percent.

Analyst Christopher D. Manuel of KeyBanc Capital Markets maintained his earnings estimate of $3.45 per share for this year even as he cut his third quarter estimate to 90 cents per share from $1.14 per share. He maintained his 2010 estimate at $4.15 per share.

But he raised his price target for the Delaware, Ohio, company to $58 from $53.

On average, analysts surveyed by Thomson Reuters expect Greif to earn $3.32 per share this year, 95 cents per share for the third quarter and $4.05 per share for 2010.

Last Wednesday, Greif said its fiscal second-quarter profit and sales fell sharply as the recession cut into demand for its industrial packaging products. But it said it saw signs of improvement in its markets as the quarter ended, and reaffirmed its 2009 earnings forecast of between $3.25 and $3.75 per Class A share.