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UPDATE: National Bank Financial Initiates Coverage on Domtar Following Multiple Personal Care Acquisitions

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UPDATE: Bank Of America Upgrades Domtar
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In a report published Tuesday, National Bank Financial analyst Leon Aghazarian initiated coverage on Domtar Corporation (NYSE: UFS) with an Outperform rating and $108.00 price target.

In the report, National Bank Financial noted, “Domtar is no longer a pure Pulp & Paper firm after four acquisitions in Personal Care (~15% of 2014e sales). Reaching the 2017 Personal Care EBITDA target of $300-500 million (vs. visibility of $200 million) calls for more M&A. International Paper's intention to shut ~8% of North America's uncoated freesheet paper (UFS) capacity could mean volume gains at higher margins for Domtar. Recent UFS selling price hikes could represent ~$150 million in incremental EBITDA.”

Domtar Corporation closed on Monday at $81.43.

Latest Ratings for UFS

DateFirmActionFromTo
Sep 2014BMO CapitalInitiates Coverage onOutperform
Sep 2014BMO CapitalInitiates Coverage onOutperform
Aug 2014Bank of AmericaUpgradesUnderperformBuy

View More Analyst Ratings for UFS
View the Latest Analyst Ratings

Posted-In: Leon Aghazarian National Bank FinancialAnalyst Color Initiation Analyst Ratings

 

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