UPDATE: Bank of America Reiterates Underperform Rating, Lowers PT on Rayonier Advanced Materials on Intense Competition, Softer Demand

In a report published Tuesday, Bank of America analyst Michael A. Roxland reiterated an Underperform rating on

, but lowered the price target from $32.00 to $26.00. In the report, Bank of America noted, “We rate RYAM Underperform. In the near term, pricing of hi-alpha pulp (RYAM's key market) has declined due to excess capacity, reducing RYAM's profitability. We expect prices could decline another 5% in 2015, versus the Street which is largely expecting a more modest price decline. The hi-alpha pulp market is faced with competitive threats from commodity viscose (CV) conversions given excess CV capacity and higher margins in hi-alpha pulp.” Rayonier Advanced Materials closed on Monday at $30.60.