UPDATE: Goldman Sachs Downgrades Domtar to Neutral on Valuation

Goldman Sachs downgraded Domtar Corporation

from Buy to Neutral and maintained an $89.00 price target. Goldman Sachs said, "We downgrade Domtar shares to Neutral from Buy given we no longer expect producers will be able to implement a mid-year uncoated freesheet (UCFS) price hike, and as result we have reduced our 2013 EPS estimate for Domtar by 21%, and valuation now appears reasonable. In 2012, UCFS prices slipped, despite operating rates of 91%. As we forecast operating rates will be unchanged in 2013, we no longer forecast a mid-year hike. Since mid-May 2012, Domtar is +8% vs. S&P 500 +12%." Domtar closed at $83.26 on Monday.