UPDATE: Bank Of America Upgrades Domtar
In a report released Tuesday, Bank of America analyst George Staphos upgraded Domtar (NYSE: UFS) from Underperform to Buy.
The note states its thesis does not have long-term outlook on paper and pulp markets. Analysts at Bank of America believe Domtar displays a positive risk/reward skew, displaying optimism within a volatile environment. Uncoated free sheet (UCFS) and pulp markets have been experiencing supply reduction with speculation of an increase of imports.
Bank of America's global strategist sees strengthening in emerging markets. Domtar trades along with emerging market trends due to China's significant impact on pulp markets.
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