Boise Shares Rise As Analyst Doubles Price Target

HARTFORD, Conn. (AP) — Shares of Boise Inc., a paper packaging manufacturer, jumped Tuesday as an analyst doubled his price target, suggesting its shares could see upside of nearly 60 percent over the next year.

Lazard Capital Management analyst Fritz Gallagher raised his price estimate to $8 from $4, which implies the stock could gain 58.1 percent over the next 52 weeks.

The Boise, Idaho, company's share value "remains compelling on almost any metric," he said in a client note.

Since trading at less than $1 from last October until April, Boise's shares have "significantly outperformed" due to a cut in debt as a result of tax credits, Gallagher said.

Boise closed at $5.06 Monday.

"However, we still believe the stock is in deep value territory," he said.

Gallagher reduced his debt estimate by $75 million to reflect tax credits he believes Boise will receive through the end of the year, reduced capacity and margin expansion. The tax credits are intended to promote an alternative fuel, a blend of diesel and a substance known as "black liquor" from producing pulp.