DA Davidson reiterated its Buy rating on Domtar Corporation UFS but lowered its price target from $100 to $95.
DA Davidson said, "Domtar is clearly facing secular challenges in its core commodity business, but management has done a fine job transitioning volume into specialty grades of pulp and paper, and most importantly milking a highly productive cash cow. For instance, in the quarter just ended, Domtar generated $140 million ($4 per share) in free cash flow, $43 million of which was used to repurchase 578,000 shares in the period. In just over two years, Domtar has retired nearly 20% of its shares (8.1 million) and we expect the company to grow the dividend imminently and continue buying stock."
Domtar Corporation closed at $79.81 on Thursday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in