UPDATE: BMO Capital Markets Reiterates Outperform Rating, Lowers PT on Domtar

In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Domtar UFS, but lowered its price target from $115.00 to $110.00. BMO Capital noted, “Domtar reported Q3/12 EPS from operations of $1.87 compared to the First Call Mean of $1.67 and our forecast of $1.64. Operating profit was $109 million versus our estimate of $101 million owing to higher-than-anticipated paper shipments. We had included an allowance for weak markets in July and August. Attends tissue profits were $12 million, unchanged from Q2/12. During Q3/12, Domtar purchased 578,328 shares at an average price of $75.42/share for a total of $46.3 million. On the negative side, we are concerned about weakness in pulp and paper demand in off-shore markets and have lowered our estimates accordingly.” Domtar closed on Thursday at $79.81.