Jefferies Remains Sidelined on USG Corp. (USG) as Demand Remains 'Choppy'

Jefferies reiterated a Hold rating on USG Corp. (NYSE: USG), and cut the price target to $24.00 (from $27.00), following the company's 4Q earnings report. Jefferies is encouraged that USG's wallboard prices were stable during the 4Q, despite a muted demand backdrop. With demand reaccelerating in January and management expecting wallboard volumes to be up 5% in 2016.

Analyst Philip Ng commented, "We're encouraged wallboard prices held and USG was able to push through a price increase in ceilings. Further, mgmt has shown a greater focus on reining in costs and capex. That said, with margins likely peaking in 2016, and demand still choppy, we remain comfortable with our Hold rating."

For an analyst ratings summary and ratings history on USG Corp. click here. For more ratings news on USG Corp. click here.

Shares of USG Corp. closed at $21.04 yesterday.

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