USG stock could rise with earnings - Barron's

NEW YORK, May 21 (Reuters) - USG Corp. (USG.N) stock could rise to $90 if the building materials maker trades again for 15 times earnings, Barron's said in its May 21 edition.

The magazine cited John De Gan, chief investment officer of Harbor Advisory, as saying USG could earn $5 to $6 a share in three years.

Analysts, on average, expect it to post a profit of $2.12 per share in 2007, according to Reuters Estimates. Its stock closed on $48.50 on Friday on the New York Stock Exchange.

USG could benefit when the housing cycle turns, the magazine said. It is also reducing wallboard output, developing new lines of business and enhancing its distribution system, Barron's said.

The company was also switching manufacturing to newer, low-cost facilities, it said.