Domtar (UFS) Cut to “Sector Perform” at Royal Bank of Canada

Domtar (NYSE:UFS) (TSE:UFS) was downgraded by investment analysts at Royal Bank of Canada from an “outperform” rating to a “sector perform” rating in a research report issued on Friday, Marketbeat.com reports. They currently have a $50.00 price target on the basic materials company’s stock. Royal Bank of Canada’s price target would suggest a potential downside of 0.66% from the stock’s previous close.

Several other brokerages also recently commented on UFS. Stephens set a $53.00 price objective on Domtar and gave the stock a “hold” rating in a research note on Wednesday. Scotiabank set a $41.00 price target on Domtar and gave the company a “sector perform” rating in a research note on Monday, October 30th. Vertical Group downgraded Domtar from a “buy” rating to a “hold” rating in a research note on Thursday, January 4th. ValuEngine downgraded Domtar from a “buy” rating to a “hold” rating in a research note on Wednesday, January 3rd. Finally, Citigroup reissued a “sell” rating and issued a $40.00 price target (down previously from $41.00) on shares of Domtar in a research note on Thursday, October 5th. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and four have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $45.27.

Shares of Domtar (NYSE UFS) opened at $50.33 on Friday. The company has a market capitalization of $3,155.39, a price-to-earnings ratio of 18.57, a P/E/G ratio of 3.50 and a beta of 1.54. Domtar has a 12 month low of $35.47 and a 12 month high of $51.57. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.20 and a current ratio of 2.29.

Domtar (NYSE:UFS) (TSE:UFS) last issued its quarterly earnings data on Friday, October 27th. The basic materials company reported $1.03 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.73 by $0.30. The business had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.26 billion. Domtar had a return on equity of 6.17% and a net margin of 3.44%. The firm’s revenue was up 1.7% compared to the same quarter last year. During the same quarter last year, the business posted $1.13 EPS. analysts expect that Domtar will post 2.67 earnings per share for the current fiscal year.

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Domtar by 14.0% in the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,610 shares of the basic materials company’s stock valued at $100,000 after purchasing an additional 320 shares during the period. Cubist Systematic Strategies LLC increased its position in shares of Domtar by 176.1% in the third quarter. Cubist Systematic Strategies LLC now owns 2,905 shares of the basic materials company’s stock valued at $126,000 after acquiring an additional 1,853 shares during the last quarter. Bridgewater Associates LP acquired a new stake in shares of Domtar in the second quarter valued at about $200,000. Shelton Capital Management acquired a new stake in shares of Domtar in the third quarter valued at about $206,000. Finally, Teacher Retirement System of Texas acquired a new stake in shares of Domtar in the third quarter valued at about $224,000. 91.01% of the stock is currently owned by hedge funds and other institutional investors.

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Domtar Company Profile

Domtar Corporation designs, manufactures, markets and distributes a range of fiber-based products, including communication papers, specialty and packaging papers and absorbent hygiene products. The Company segments include Pulp and Paper and Personal Care. The Pulp and Paper segment consists of the design, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp.

Analyst Recommendations for Domtar (NYSE:UFS)

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