Deutsche Bank Downgrades Domtar (UFS) to Hold; Lower Pulp Forecast and Uncertain Macro-Economic Environment

Deutsche Bank downgraded Domtar (NYSE: UFS) from Buy to Hold with a price target of $80.00.

Deutsche analyst says, "Downgrade is based on more cautious pulp outlook and uncertain macroeconomic environment. As noted above, the decline in global pulp prices is accelerating. At the same time, paper demand remains sluggish and prices are coming under pressure. Our $80 price target is based on ~4.5x our FY'12 EBITDA estimate of $740MM. This is roughly half a turn below Domtar's historical avg. trading multiple."

For more ratings news on Domtar click here and for the rating history of Domtar click here.

Shares of Domtar closed at $75.29 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Deutsche Bank Downgrades Qifu Technology (3660:HK) (QFIN) to Hold
• JPMorgan Downgrades HomeCo Daily Needs REIT (HDN:AU) to Neutral
• DA Davidson Downgrades Blaize Inc. (BZAI) to Neutral