In a report released today, Adam Josephson from KeyBanc maintained a Sell rating on Domtar Corp (NYSE: UFS). The company’s shares closed yesterday at $47.88.
Josephson noted:
“We are significantly increasing our estimates for Domtar Corporation (UFS) post-1Q given a much-improved N.A. uncoated freesheet market and surging pulp prices. There isn’t a compelling near-term downside case given how strong the pulp and freesheet markets are at the moment, but we think industry conditions are as good as they’re going to get, and 2019 could be a very different story (similar to what happened the last time conditions were this good). Domtar has two segments but is in three businesses: N.A. uncoated freesheet, pulp, and personal care. The personal care business has had major problems for many years, as a result of which Domtar took a huge goodwill impairment charge last year.”
According to TipRanks.com, Josephson is a 3-star analyst with an average return of 7.3% and a 61.4% success rate. Josephson covers the Consumer Goods sector, focusing on stocks such as International Paper Co, Avery Dennison Corp, and Graphic Packaging.
Domtar Corp has an analyst consensus of Moderate Sell, with a price target consensus of $47.
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Based on Domtar Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $1.35 billion and net profit of $54 million. In comparison, last year the company earned revenue of $1.3 billion and had a net profit of $20 million.
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Domtar Corp. engages in the design, manufacturing, marketing, and distribution of fiber-based products, which includes communication papers, specialty and packaging papers and absorbent hygiene products. It operates through the following segments: Pulp and Paper, and Personal Care.
