Domtar (UFS) – Analysts’ Latest Ratings Updates

Domtar (UFS) – Analysts’ Latest Ratings Updates

A number of research firms have changed their ratings and price targets for Domtar (NYSE: UFS):

2/6/2019 – Domtar was downgraded by analysts at Royal Bank of Canada from an “outperform” rating to a “sector perform” rating. They now have a $55.00 price target on the stock, up previously from $50.00.

2/6/2019 – Domtar had its “market perform” rating reaffirmed by analysts at Raymond James. They now have a $52.00 price target on the stock.

2/6/2019 – Domtar had its price target raised by analysts at TD Securities from $45.00 to $51.00. They now have a “hold” rating on the stock.

2/6/2019 – Domtar was upgraded by analysts at TheStreet from a “c” rating to a “b” rating.

2/4/2019 – Domtar was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Domtar expects that its fourth-quarter 2018 will be a less active quarter due to major plant maintenance shutdown in its Pulp and Paper business. Adverse foreign currency translation against pulp purchasing currencies is expected to hamper price realizations of Domtar's pulp products. In the paper segment, import challenges remain a headwind. Further, Domtar's performance will be hurt by rising raw material prices, competitive pressure and unfavorable foreign currency movements.”

1/15/2019 – Domtar was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “For fourth-quarter 2018, Domtar expects lower maintenance costs and price increases to aid the Pulp and Paper segment’s results. Domtar will benefit from the margin-improvement plan within the Personal Care Division. Further, cyclical demand growth and development in specialty business will drive growth. Moreover, the company remains well poised to benefit from its focus on balanced capital-deployment approach. The stock has outperformed the industry it belongs to, over the past year. However, Domtar's performance will be hurt by plant maintenance shutdown, rising raw material prices, competitive pressure and unfavorable foreign currency movements.”

1/10/2019 – Domtar was upgraded by analysts at ValuEngine from a “strong sell” rating to a “sell” rating.

1/7/2019 – Domtar had its price target lowered by analysts at Citigroup Inc from $52.00 to $38.00. They now have a “neutral” rating on the stock.

1/5/2019 – Domtar was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “For fourth-quarter 2018, Domtar expects lower maintenance costs and price increases to aid the Pulp and Paper segment’s results. Domtar will benefit from the margin-improvement plan within the Personal Care Division. Further, cyclical demand growth and development in specialty business will drive growth. Moreover, the company remains well poised to benefit from its focus on balanced capital-deployment approach. The stock has outperformed the industry it belongs to, over the past year. However, Domtar's performance will be hurt by plant maintenance shutdown, rising raw material prices, competitive pressure and unfavorable foreign currency movements.”

Shares of UFS traded up $0.70 during mid-day trading on Monday, hitting $50.35. 837,148 shares of the company’s stock were exchanged, compared to its average volume of 957,716. Domtar Corp has a 52 week low of $33.81 and a 52 week high of $54.50. The stock has a market capitalization of $3.12 billion, a PE ratio of 10.92, a P/E/G ratio of 1.77 and a beta of 1.98. The company has a current ratio of 2.03, a quick ratio of 1.06 and a debt-to-equity ratio of 0.34.

Domtar (NYSE:UFS) (TSE:UFS) last announced its earnings results on Tuesday, February 5th. The basic materials company reported $1.63 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.62 by $0.01. The company had revenue of $1.39 billion for the quarter, compared to analysts’ expectations of $1.44 billion. Domtar had a net margin of 5.19% and a return on equity of 11.59%. The business’s revenue for the quarter was up 4.1% on a year-over-year basis. During the same period last year, the firm earned $0.64 earnings per share. Equities research analysts predict that Domtar Corp will post 5.63 earnings per share for the current fiscal year.

A number of large investors have recently made changes to their positions in UFS. Oregon Public Employees Retirement Fund increased its stake in Domtar by 3,483.6% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 877,934 shares of the basic materials company’s stock valued at $25,000 after acquiring an additional 853,435 shares during the last quarter. Winslow Evans & Crocker Inc. bought a new position in Domtar in the fourth quarter valued at approximately $26,000. Stevens First Principles Investment Advisors bought a new position in Domtar in the fourth quarter valued at approximately $31,000. Enlightenment Research LLC bought a new position in Domtar in the fourth quarter valued at approximately $77,000. Finally, IFP Advisors Inc increased its stake in Domtar by 144.8% in the fourth quarter. IFP Advisors Inc now owns 2,269 shares of the basic materials company’s stock valued at $79,000 after acquiring an additional 1,342 shares during the last quarter. 90.06% of the stock is currently owned by institutional investors and hedge funds.

Domtar Corporation designs, manufactures, markets, and distributes various communication papers, specialty and packaging papers, and absorbent hygiene products in the United States, Canada, Europe, Asia, and internationally. It operates in two segments, Pulp and Paper, and Personal Care. The company offers business papers, including copy and electronic imaging papers for use with inkjet and laser printers, photocopiers, and plain-paper fax machines, as well as computer papers, preprinted forms, and digital papers for office and home use.

Read More: Leveraged Buyout (LBO) Explained

Related posts

Leave a Comment