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Sylvamo (NYSE:SLVM) on Thursday was downgraded to Sector Carry out from a earlier funding score of Outperform by analysts at RBC Capital Markets. They stated the maker of printing paper faces weak demand and destocking tendencies in Europe and North America.
“Whereas uncoated freesheet (UFS) demand has been very sluggish by way of H1 2023 (year-over-year, demand is down 17% in North America, down 22% in Europe and down 7% in Latin America), administration is taking a longer-term view on demand tendencies,” Paul C. Quinn, analyst at RBC, stated in an August 10 report.
RBC lowered its earnings estimates and minimize its value goal for Sylvamo (SLVM) to $44 a share from $55 a share, based mostly on a a number of of about 5 occasions Ebitda of $575 million for 2024.
Sylvamo (SLVM), whose manufacturers embody Hammermill and HP Papers, on Wednesday stated Q2 gross sales rose 0.8% from a yr earlier to $919 million, lacking the consensus estimate of about $960 million.
Adjusted working earnings fell 45% to $49 million, or $1.14 a share, from $89.9 million, or $2.02 a share, a yr earlier. Adjusted EPS missed the consensus estimate of $1.19.
Sylvamo’s (SLVM) inventory this yr fell 14% by way of August 9, contrasting with a ten% acquire for the Normal & Poor’s 400 midcap inventory index (SP400).
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