S&P Capital IQ Downgrades USG from BUY to HOLD

October 21 00:00 2011

New York, October 21 (RainbowNewsLine.com) – Analyst Michael Jaffe of S&P Capital IQ downgrades USG (NYSE:USG) from BUY to HOLD. The target price has been reduced to $10 from $18.

Analyst Michael Jaffe, in a research report published yesterday mentions that the company reported its Q3 EPS short of the estimates due to less demand for USG’s building products. The analyst believes that the company is doing a solid job of cutting costs, with its SG&A spending down to ’02 levels. Although the company’s sales have been stabilized, the sign of true revival appears to be slim, the analyst says. The per share loss estimates for 2011 and 2012have been raised to $2.90 from $2.65 and to $2.00 from $.1.40, respectively.