Prudential Downgrades Bowater to 'Sell'

Analyst John Tumazos says the paper company's business is improving at a slower rate than its rivals

Prudential downgraded Bowater (BOW ) to sell from hold.

Analyst John Tumazos says the results from the paper and printing company's specific mix of business appears to be improving at a slower rate than even weak recoveries he forecast for other paper companies. Tumazos thinks it is possible that a $20 portion of the announced $50 per metric tonne August price hike that he expects for the December quarter could reverse partly in the seasonally slower March 2003 quarter.

He widened his $2.09 2002 loss estimate to a $2.22 loss, and cut the $0.67 2003 loss estimate to $1.63. He also cut the $40 target to $28.

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