Dundee Capital Markets upgraded I have been involved with the forest industry and know this company. It is a very strong company that use to pay big dividends. I have just purchased it and I am very pleased. Take a look at the technicals for this company.Nov 2 (Reuters) - Dundee Capital Markets upgraded forest products company Canfor Corp to "buy" from "sell", saying a likely improvement in the U.S. housing sector should boost demand and prices for lumber.
"We are moderating our stance on US housing and becoming more positive, hence our view on lumber producers is improving," analyst Richard Kelertas wrote in a note to clients.
The analyst said recent pulp price increases, which have occurred over the last six months, are sustainable although "they are topping off somewhat."
"We are now expecting positive momentum to continue building in both of Canfor's segments (lumber and market pulp)," said Kelertas, who raised the price target on the company's stock by 70 percent to C$8.50.
Kelertas sees a sustainable turnaround by the second half of 2010 for Canfor, which is Canada's second-largest producer of softwood lumber.
The company, which posted a narrower-than-expected third-quarter loss last week, is also benefiting from the Chinese lumber demand, the analyst said.
Shares of the Vancouver-based company were up 10 Canadian cents at C$6.15 Monday morning on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Deepak Kannan)