Buckeye Could Score You a Double

Buckeye Technologies (NYSE:BKI) — This company is the world’s largest manufacturer of cellulose-based specialty products made from wood and cotton utilizing wetlaid and airlaid technologies.

Several analysts have focused on BKI because of the company’s recent unexpected gains and strong financial report. Q3 earnings came in at 74 cents versus a consensus of 34 cents, and sales rose 19%. In FY 2012, earnings are expected to jump to $2.85 versus $2.23 in 2011, and FY 2013 could increase to $3.20.

The company recently announced the building of new facilities to handle the demand for its products. And S&P raised its price target to $33 from $29. But the break from $30 on high volume yields a technical target of $38.

Buckeye’s products are in high demand, so long-term buyers could achieve a possible double within two years.

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Article printed from InvestorPlace Media, https://investorplace.com/2011/12/buckeye-could-score-you-a-double/.

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