UPDATE: Deutsche Bank Downgrades Rayonier on Significant Downside Risks Ahead

In a report published Friday, Deutsche Bank analyst Mark Wilde downgraded the rating on

from Hold to Sell, and lowered the price target from $55.00 to $47.00. In the report, Deutsche Bank noted, “While recent commentary around RYN's timberland and real estate operations has been quite encouraging, outlook for its Cellulose Specialties business (accounts for 72% of segment EBIT) suggests significant downside risks ahead. RYN said recent contract negotiations suggest a drop in 2014 cellulose specialties (CS) prices and slower transition to CS. Beyond lower cashflows, a sharp price drop could dampen bullish “specialty chemicals” valuations that have been floated for the segment. Pick-up in timber & real estate markets may mitigate some downside pressure on stock, but they won't eliminate it. Downgrading RYN from Hold to Sell. PT goes from $55 to $47.” Rayonier closed on Thursday at $54.96.