Temple-Inland Up After Analyst Hikes Price Target

NEW YORK (AP) — Shares of Temple-Inland Inc. rose Thursday after an analyst raised his price target on the timber company's shares, saying the stock should attract investors who are shopping for bargains.

Deutsche Bank analyst Mark Wilde said that as a group, shares of paper and forest products companies have risen much of the summer. Since late May, the S&P Paper and Forest Products index has climbed 30 percent.

That rally has reduced opportunities for investors seeking stocks that trade at a discount. However, one such remaining opportunity among timber and forest products companies is Temple-Inland, said Wilde.

"At current levels, we think the best call is Temple-Inland," he said, reiterating his "Buy" rating and raising his price target to $22 from $19. "It offers a compelling mix of cyclical leverage along with good assets and a rapidly improving balance sheet."

Wilde said as much as 80 percent of Temple-Inland's product is cardboard box parts, which "is the best positioned domestic paper business over the next several years."

Furthermore, the market does not appear to be placing enough value on Temple-Inland's building products business, which stands to gain from any increase in residential construction.