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

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Earnings Scheduled For October 23, 2014
UPDATE: Bank Of America Upgrades Domtar

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
Oct 2014CitigroupMaintainsNeutral
Oct 2014CitigroupMaintainsNeutral
Oct 2014Scotia CapitalUpgradesSector PerformSector Outperform

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View the Latest Analyst Ratings

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

 

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