Rayonier Advanced Materials (RYAM) Rises Following Positive Commentary

Rayonier Advanced Materials Inc. (NYSE: RYAM) is up early Monday following a positive Barron's piece over the weekend.

Barron's noted that the Rayonier (NYSE: RYN) spin-off is a leader in the highly concentrated, high barrier to entry cellulose specialties market. Roughly three companies control 70 percent of the market.

While shares of Rayonier Advanced Materials rising 15 percent after completion of its spin-off, the stock still looks attractive at $41.50.

Two major competitors include Tembec (TMB.Canada) and Buckeye Technologies, a unit of Georgia-Pacific.

One D.A. Davidson analyst sees the stock rising 30 percent in the next 12 to 18 months. He sees Rayonier Advanced Materials reporting net income of $2.87 on revenue of about $1 billion this year and EPS of $3.27 in FY15.

Expansion from Rayonier Advanced Materials and peers has caused cellulose prices to slip in 2014, but pricing is expected to remain flat next year.

Shares of Rayonier Advanced Materials are up 2.4 percent.

You May Also Be Interested In

• Rayonier Advanced Materials names Daniel Krawczyk as CEO
• Tractor Supply Company (TSCO) PT Lowered to $40 at DA Davidson as Recovery Appears Unlikely
• Wall Street faces record $8.3 trillion options expiration Thursday