UPDATE: Goldman Sachs Starts Domtar (UFS) at Neutral

September 22, 2016 6:39 AM EDT
Get Alerts UFS Hot Sheet
Price: $37.13 +1.20%

Rating Summary:
    6 Buy, 7 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 9 | New: 77
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(Updated - September 22, 2016 9:16 AM EDT)

Goldman Sachs initiated coverage on Domtar (NYSE: UFS) with a Neutral rating and a price target of $40. Analyst Brian Maguire is negative on the near-term outlook for Pulp.

"We believe that UFS’s current coverage-low multiple of 5.1x 2016E EBITDA fairly reflects its challenges competing with better-capitalized, stronger brands in Personal Care, the well known secular decline in Uncoated Freesheet (UCFS), and near-term pricing headwinds in pulp. While Personal Care has recently had some important wins that should accelerate top line growth, we are less confident about management’s medium-term profitability goals (mid-teens margins) for the business. Furthermore, our negative view on the pulp markets offsets our positive view (relative to consensus) on UCFS," said the analyst.

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 $36.66 yesterday.



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