Vertical Research Lowers Domtar (NYSE:UFS) to Hold

Domtar (NYSE:UFS) (TSE:UFS) was downgraded by analysts at Vertical Research to a “hold” rating in a research note issued to investors on Thursday, September 13th. They presently have a $54.00 target price on the basic materials company’s stock. Vertical Research’s target price would indicate a potential upside of 10.93% from the company’s current price.

Several other equities research analysts have also issued reports on the stock. Citigroup raised shares of Domtar from a “sell” rating to a “neutral” rating and boosted their price target for the company from $47.00 to $53.00 in a report on Friday, September 7th. Zacks Investment Research lowered shares of Domtar from a “buy” rating to a “hold” rating in a report on Tuesday, August 21st. BMO Capital Markets upped their target price on shares of Domtar from $47.00 to $52.00 and gave the stock a “market perform” rating in a report on Monday, August 13th. Royal Bank of Canada upped their target price on shares of Domtar from $52.00 to $54.00 and gave the stock an “outperform” rating in a report on Thursday, August 2nd. Finally, KeyCorp raised shares of Domtar from an “underweight” rating to a “sector weight” rating in a report on Wednesday, August 1st. Thirteen research analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. Domtar presently has a consensus rating of “Hold” and a consensus price target of $47.21.

Shares of Domtar stock opened at $48.68 on Thursday. The firm has a market capitalization of $3.28 billion, a price-to-earnings ratio of 18.83, a price-to-earnings-growth ratio of 2.72 and a beta of 1.57. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.31 and a current ratio of 2.31. Domtar has a 52-week low of $40.72 and a 52-week high of $54.50.

Domtar (NYSE:UFS) (TSE:UFS) last announced its quarterly earnings results on Wednesday, August 1st. The basic materials company reported $0.65 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.77 by ($0.12). The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.32 billion. Domtar had a negative net margin of 3.25% and a positive return on equity of 7.79%. The company’s quarterly revenue was up 10.5% compared to the same quarter last year. During the same period last year, the firm earned $0.61 EPS. Analysts expect that Domtar will post 3.84 EPS for the current fiscal year.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Point72 Asia Hong Kong Ltd lifted its position in Domtar by 3,432.7% during the 1st quarter. Point72 Asia Hong Kong Ltd now owns 3,568 shares of the basic materials company’s stock worth $152,000 after buying an additional 3,467 shares in the last quarter. Bank of Hawaii acquired a new position in Domtar during the 2nd quarter worth about $201,000. World Asset Management Inc acquired a new position in Domtar during the 2nd quarter worth about $211,000. Capital Fund Management S.A. acquired a new position in Domtar during the 2nd quarter worth about $235,000. Finally, LPL Financial LLC acquired a new position in Domtar during the 1st quarter worth about $213,000. Institutional investors and hedge funds own 93.31% of the company’s stock.

About Domtar

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.

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Analyst Recommendations for Domtar (NYSE:UFS)

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