TSXV:NS.RT - Post by User
Post by
BlackDog914on May 27, 2004 10:14am
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Post# 7537169
Globe says Abitibi, Norske Skog rated "buy"
Globe says Abitibi, Norske Skog rated "buy" The Globe and Mail reports in its Thursday edition that demand for
newsprint appears to be on the upswing. The Globe's Carolyn Leitch writes
that Jaret Anderson of UBS Securities Canada upgraded shares of
Abitibi-Consolidated and Norske Skog Canada to "buy" from "neutral". Mr.
Anderson believes recovery in newsprint demand has begun and says the firms
are positioned well to benefit from rising newsprint prices. "The economic
backdrop is continually improving." The analyst also raised his 12-month
price target for Abitibi and Norske stock to $12 and $5.50 from $11 and $5.
Abitibi and Norske stock stock closed Wednesday in Toronto at $9.50 and
$4.29. Mr. Anderson says monthly statistics for April, which were released
this week, show United States newsprint consumption is down 2.4 per cent in
2004. However, Mr. Anderson believes the market has stabilized, if not
started to turn. Mr. Anderson says trends in the job market and ad lineage
for "help wanted" are encouraging. Mr. Anderson says one wild card is
Abitibi's labour negotiations. TD Newcrest analyst Sean Steuart said labour
negotiations broke down last weekend, but he is optimistic that a strike
can be avoided.