| Over a week ago | ||||
RBC Capital analyst Paul… RBC Capital analyst Paul Quinn downgraded Resolute Forest to Sector Perform from Outperform with a price target of $2.50, down from $3.00. In pulp, the analyst believes that prices will show some weakness and that producer discounts will increase based on a weakening demand outlook and his belief that pulp inventories are higher than suggested by recent statistics. Quinn adds that tissue demand has been strong and lumber has been decent, but his outlook for pulp, specialty paper, and newsprint has deteriorated meaningfully. | ||||
RBC Capital analyst Paul… RBC Capital analyst Paul Quinn downgraded Resolute Forest Products to Sector Perform from Outperform with a $2.50 price target. | ||||
| Over a month ago | ||||
TD Securities analyst… TD Securities analyst Sean Steuart raised the firm's price target on Resolute Forest to $2.75 from $1.50 and keeps a Hold rating on the shares. | ||||
RBC Capital analyst Paul… RBC Capital analyst Paul Quinn reiterated an Outperform rating and C$3 price target on Resolute Forest Products, saying that the company's Q1 results were ahead of "admittedly subdued" expectations. | ||||
Reports Q1 revenue $689M… Reports Q1 revenue $689M vs. $795M a year ago. "Q1 results reflect a resurgence in market prices for lumber that began late in 2019 together with lower maintenance costs in pulp and paper, but they were unfavorably affected by lower newsprint prices," said CEO Yves Laflamme. "The tissue business is progressing well in the current context as we grow our customer base with the increase in demand and we demonstrate our products and capabilities. While we continue to operate across all of our business segments, we've had to take a number of measures in the face of the dramatic reduction in economic activity due to the coronavirus pandemic, such as reducing our operational footprint to demand levels consistent with essential needs, drawing on our credit facilities to keep higher levels of cash, reducing SG&A expenses and suspending or deferring capital spending. We are well-positioned financially and operationally to face this challenge, but this situation contains a very high degree of uncertainty and the extent of the potential consequences are impossible to predict." | ||||
| Over a quarter ago | ||||
The company states:… The company states: "Resolute Forest provided an update on the impact of the COVID-19 situation to its business. While certain government authorities in Canada and the United States have ordered the closure of all non-essential business operations in regions where Resolute operates, they have also recognized the importance of the forest products sector in the fight against the coronavirus pandemic: tissue products to fill empty shelves; pulp to produce tissue, air filters, paper gowns, and other medical and personal care supplies; paper to keep people informed of developments and advisories; and wood products to support the demand for building and essential infrastructure. Accordingly, Resolute expects to continue to operate in all of its business segments - pulp, tissue, wood products and paper - in Canada and the United States. But the company expects to take certain temporary steps to reduce its operational footprint to demand levels consistent with essential needs for the duration of the crisis. The company will adjust capacity dynamically based on the conditions and rapid evolution of the situation, but most of the capacity reduction is expected to come from the wood products and paper segments. The temporary capacity reductions will be implemented over the coming days and will be announced locally." | ||||
Resolute Forest Products… Resolute Forest Products announced that its board of directors authorized the repurchase of up to 15% of the company's common stock for aggregate consideration of up to $100M. Repurchase transactions will be funded using the company's sources of liquidity. | ||||
RBC Capital analyst Paul… RBC Capital analyst Paul Quinn upgraded Resolute Forest to Outperform from Sector Perform with a price target of $5, up from $4.50. The analyst notes that while the company has missed on Q4 earnings, as lower-than-expected Pulp, Wood Product, and Specialty Paper results weighing on the quarter, he sees the current valuation as "attractive" for an entry point considering that many of its end markets are near their cyclical lows. | ||||
RBC Capital analyst Paul… RBC Capital analyst Paul Quinn upgraded Resolute Forest Products to Outperform from Sector Perform with a $5 price target. | ||||
CEO Yves Laflamme stated,… CEO Yves Laflamme stated, "Our average transaction price in market pulp is down by over $200 per metric ton from its peak about one year ago, but we believe the cycle reached bottom in Q4. Indeed, we see stronger operating rates, especially in softwood pulp, as indicators of long-term demand growth for quality market pulp, which is consistent with the recently-reported steps the industry has taken toward pricing recovery. With our existing tissue footprint, we expect progressive earnings growth for 2020 in the business as we continue to build on recent improvements around sales growth and productivity gains. We're excited with the prospects around the pending acquisition of three U.S. sawmills, as our timing allowed us to achieve an attractive price. The upside will come with the turnaround plan for the assets and continued momentum in market conditions from their recent soft levels. We will continue to maximize the earnings power and cash generation of our paper segments, although we have modest expectations when it comes to this year's earnings as there are limited catalysts to support a material improvement in the near term." | ||||