UPDATE: DA Davidson Reduces PT to $95 on Domtar Corporation on Secular Challenges
DA Davidson reiterated its Buy rating on Domtar Corporation (NYSE: UFS) but lowered its price target from $100 to $95.
DA Davidson said, "Domtar is clearly facing secular challenges in its core commodity business, but management has done a fine job transitioning volume into specialty grades of pulp and paper, and most importantly milking a highly productive cash cow. For instance, in the quarter just ended, Domtar generated $140 million ($4 per share) in free cash flow, $43 million of which was used to repurchase 578,000 shares in the period. In just over two years, Domtar has retired nearly 20% of its shares (8.1 million) and we expect the company to grow the dividend imminently and continue buying stock."
Domtar Corporation closed at $79.81 on Thursday.
Latest Ratings for UFS
|Jan 2017||Bank of America||Upgrades||Neutral||Buy|
|Oct 2016||Bank of America||Upgrades||Underperform||Neutral|
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