UPDATE: D.A. Davidson Reiterates Buy Rating, Lowers PT on Clearwater Paper Corporation on Continued Near-Term Weakness

In a report published Friday, D.A. Davidson analyst Steven Chercover reiterated a Buy rating on

, but lowered the price target from $64.00 to $60.00. In the report, D.A. Davidson noted, “The biggest fear surrounding Clearwater's TAD tissue expansion at Shelby, N.C. appears to be materializing, as the acceptance and sell through of the new capacity is going slower than originally anticipated. When the new capacity was announced (before Shelby was chosen as the site) we indicated that ‘new machine' was a ‘four letter word', and this fear was exacerbated by similar moves by other East Coast competitors. While we grew more comfortable with the strategy as it became clear that Clearwater's major customers (the grocers) needed a ‘Charmin knockoff', we also postulated that the consumer's posterior (and wallet) might be the real beneficiary of the tissue expansion orgy. Indeed this appears to be the case.” Clearwater Paper Corporation closed on Thursday at $47.49.