UPDATE: Goldman Sachs Starts Domtar (UFS) at Neutral
- Wall St. rises amid robust earnings, GDP data
- FBI to review more emails related to Clinton's private email use: letter
- Unusual 11 Mid-Day Movers 10/28: (GRVY) (VRTS) (ITGR) Higher; (OPXA) (SNMX) (STON) Lower
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
(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.
Shares of Domtar closed at $36.66 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Leerink Partners Downgrades McKesson (MCK) to Market Perform
- Alphabet (GOOGL) (GOOG) Bullish View Reiterated at Mizuho Post Q3, Remains Top Pick
- Wedbush Remains Bullish on Amazon.com (AMZN) Following 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Related EntitiesGoldman Sachs
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!