UPDATE: JP Morgan Upgrades Domtar To Neutral, $102 PT

JP Morgan has published a research report on Domtar UFS and has upgraded the company from Underweight to Neutral. In the report, JP Morgan writes, "The rationale for our move to Neutral (versus Overweight) is that we still have some concern that pulp prices could fall further. Our model assumes a trough in NBSK of $960/tonne in 4Q, similar to the 2010 trough, versus August prices of $990/tonne (down from the $1,040 peak). That said, $900/tonne is not out of the question given NBSK cash costs, its historical spread versus China NBSK and the potential for strengthening of the USD." JP Morgan currently has a $102 price target on Domtar, which closed Friday at $69.83.