Analyst slashes price target on AbitibiBowater

NEW YORK (AP) - Shares of AbitibiBowater Inc. fell Friday afternoon after an analyst slashed his price target on the paper products maker by more than 30 percent, citing its higher costs and weaker newsprint and lumber volumes. In a client note, Lehman Brothers analyst Peter Ruschmeier cut his price target on the Montreal-based company to $9 from $13--a 30.8 percent reduction. His new price target implies upside of less than 1 percent over its ending price Thursday of $8.93. "We remain concerned about the company's exposure to declining newsprint demand, chronically high costs, a strong Canadian dollar, and significant financial leverage," the analyst wrote. Ruschmeier, who has an "Equal Weight" ranking on the stock, hiked the amount he estimates AbitibiBowater will lose in the second quarter to $2.42 per share from $2.31 per... [read full story]