TD Securities Downgrades Resolute Forest Products (RFP) to Reduce

TD Securities downgraded Resolute Forest Products (NYSE: RFP) from Hold to Reduce with a price target of $4.75. The downgrade follows a recent rally.

Analyst Sean Steuart said, "We believe that Resolute's share price has overreacted to positive momentum in North American newsprint markets. Resolute's share price has rallied 48% over the past six weeks – outpacing an average gain of 28% for comparable pulp & paper weighted equities over the same time frame. Recall that Resolute's share price collapsed following disappointing Q4/15 results. Successful implementation of Q1 North American newsprint price hikes has contributed to the relief rally."

"We are supportive of management's strategy of diversification into less volatile tissue markets, but believe that the company's valuation is discounting an overly optimistic earnings recovery," added the analyst.

For an analyst ratings summary and ratings history on Resolute Forest Products click here. For more ratings news on Resolute Forest Products click here.

Shares of Resolute Forest Products closed at $5.51 yesterday.

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