In a report released today, Adam Josephson from KeyBanc maintained a Hold rating on Clearwater Paper (CLW). The company’s shares closed yesterday at $22.46, close to its 52-week low of $21.55.
Josephson observed:
“We were well below consensus for 2019 before the 4Q results, and we are cutting our estimates further. Our 2019 adj. EBITDA estimate is going from $154M to $145M (consensus is $162M), and we are introducing a 2020 estimate of $140M (consensus is somehow at $215M, which makes no sense to us). Regarding 2020, maintenance outage expense should be lower by $5M-$10M, but given the ongoing pressures on the business, we expect other factors to more than offset that benefit. The Company was unable to offer any assurances that the tissue market will improve anytime soon (how would it while taking a major impairment charge?), and we’re of the belief that N.A. SBS boxboard industry conditions could be under pressure in the years to come, such that current SBS conditions are closer to peak than trough.”
According to TipRanks.com, Josephson is a 4-star analyst with an average return of 8.6% and a 68.1% success rate. Josephson covers the Consumer Goods sector, focusing on stocks such as International Paper Co, Avery Dennison Corp, and Graphic Packaging.
Clearwater Paper has an analyst consensus of Moderate Buy, with a price target consensus of $36.50, a 62.5% upside from current levels. In a report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $29 price target.
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The company has a one-year high of $40.85 and a one-year low of $21.55. Currently, Clearwater Paper has an average volume of 155.9K.
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Clearwater Paper Corp. engages in the manufacturing and selling of private label tissue, paperboard, and pulp-based products. It operates through the Consumer Products and Pulp and Paperboard segments. The Consumer Products segment manufactures and sells a complete line of at-home tissue products as well as Away From Home products.
