BofA/Merrill Lynch Upgrades Domtar (UFS) Two-Notches to Buy

BofA/Merrill Lynch upgraded Domtar (NYSE: UFS) from Underperform to Buy with a price target of $45.00 (from $44.00) citing better prospects ahead.

Analyst George Staphos said while they don't like the long-term prospects for the company's key paper and pulp markets, with shares down 29% ytd thee believe much of the negatives are in the stock.

The firm sees an increasing likelihood that domestic supply is reduced, including potential capacity closures or conversions. Also, imports are unlikely to keep growing share, and pulp prices have held up better than expected.

For an analyst ratings summary and ratings history on Domtar click here. For more ratings news on Domtar click here.

Shares of Domtar closed at $36.44 yesterday.

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