BMO Capital analyst Mark Wilde downgraded Domtar to Underperform from Market Perform and lowered his price target for the shares to $39 from $52. The biggest near-term challenges facing the company are the steep drop in global pulp prices and signs of erosion in uncoated white paper markets, Wilde tells investors in a research note. Further, he near-term option value of Domtar's fleet of pulp and paper mills has diminished over the past year, adds the analyst. As a result, Wilde believes it is "hard to argue" that shares of Domtar will trade "in line" with the market over the next several months.