Hello, I'm a long time investor in BZ and no reason for the downgrade. I know the margins are low, but why the downgrade?
EPS estimates have not dropped. 75 million in shares buyback should be positive for the company going forward.
How concerned do I need to be about this downgrade? The pps is going down when the DOW is up. BZ never trades like this unless investors are selling off.
J.P. Morgan said that on the back of its sector estimate cuts today (see separate note), it is downgrading BZ from OW to N. “Shares currently trade at a cheap 4.2x 2012E EBITDA versus 5.0x for the group, representing a ~15% discount. We will remain vigilant about searching for an opportunity for BZ to revalue closer to 10%, though for now we move to the sidelines on greater-than-average EPS risk.”
Boise closed yesterday at $6.15.
I saw the not yesterday and JPM said they downgraded the whole sector and then BZ individually bc of a greater than average risk to near term earnings. Also said they were searchin for a price to get clients back in.
I can understand the risk due to BZ not meeting last qtr EPS estimates due to some maintenance shut downs that were costly. But that is no reason to downgrade them.
Do you have the link regarding the reason for downgrade? I wonder if management have started to buy back shares.