While there's sensitivity to consumer demand in a portion of MeadWestvaco's business, the paperboard manufacturer's beverage, health-care and pharmaceutical containers are more defensive. Also, the company is No. 1 in the paperboard market, which gives it some pricing control. Speaking of rich P/Es, MeadWestvaco shares (MWV)sell for 284 times estimated earnings for the next four quarters. It expects to prune as much as $300 million in costs by the end of 2010. That should help margins widen and earnings take hold when consumer demand revives.

Buy - Price 10.94 on Dec. 16
by Deutsche Bank

Even on our reduced estimates, valuation multiples appear modest and fail to adequately account for [paper-producer and packager] MWV's impressive land holdings. MWV offers one of the sector's best balance sheets and an 8.4% dividend yield. We [recently] lowered our FY09 estimate from 90 cents to 60 cents [per share] to reflect lower volumes across MWV's entire portfolio, as well as lower [foreign-exchange] translation....Our 18 target is based primarily on a DCF analysis. We use a 15.3% equity cost of capital, based on a 4% risk-free rate, a 7.5% equity market-risk premium, and a 1.5 beta. We also use a 6.7% after-tax cost of debt....We [still] have concerns about the ability of current management to create shareholder value. Other risks: demand slowdown for high-value timberlands; slowing consumer/office markets; and adverse currency moves. Market cap: $2 billion.

3.10%
Icahn

Credit Suisse said it is upgrading MeadWestvaco (MWV) to Outperform from Neutral based on favorable risk/reward balance. Raised target price to $38 from $30.

company match in 401K. should I convert to small-mid caps

Downgraded by Prudential from Neutral to Underweight

Downgraded by Deutsche Securities from Buy to Hold

already own shares

Upgraded by Goldman Sachs from Neutral to Buy