Doman Building kept at "outperform" 2021-10-21 09:08 ET - In the News
The Globe and Mail reports in its Thursday edition that RBC Dominion Securities analyst Paul Quinn has reaffirmed his recommendation for Doman Building Materials Group at "outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. Quinn cut his share target by $1 to $10. He cut his target "to reflect slower-than-expected earnings growth." Analysts on average target the shares at $10.50. Looking ahead, Mr. Quinn sees strong demand offsetting rising input costs. He says in a note: "Despite some fairly material corrections, OSB and lumber pricing still remain at historically high levels. In other forest product commodities, the supply and demand balance remains tight, although we are starting to see slowing growth rates. Regardless, paper and packaging producers have been able to leverage strong market conditions into higher pricing over the last 12 months. We expect that earnings will be strong for most companies given elevated capacity utilization and favorable pricing. However, input costs are becoming a larger factor. Costs for recovered paper, chemicals, and transportation will all likely be topical and could potentially cause variances versus consensus estimates."