PPX - BA-Merrill Lynch rates the stock as Buy, High RiskBY...

PPX - BA-Merrill Lynch rates the stock as Buy, High Risk
BY BROKER NEWS - 06/04/2011

The closure of a failing paper mill in Europe will reduce net supply and thus help support price increases, the broker suggests. Rising prices typically improve the margins of paper producers, the broker notes.

Thus PaperlinX should be in a good position given its restructuring push and debt rationalisation, so the broker retains Buy.

Sector: Materials.

Target price is $0.80.Current Price is $0.34. Difference: $0.46 - (brackets indicate current price is over target). If PPX meets the BA-Merrill Lynch target it will return approximately 58% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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