TSX:IFP - Post Discussion
Post by
retiredcf on Jan 09, 2023 7:52am
Scotia Capital
Scotia Capital’s Benoit Laprade predicts inventory write-downs will lead to negative EBITDA for most lumber producers in the fourth quarter of 2022.
In a research report released Monday, the analyst moved his earnings projections largely lower to “reflect the actual commodity prices and FX in the quarter,” however he noted “valuations remain very attractive.”
“The key changes to our Q4/22 forecasts are lower-than-expected wood product prices, slightly lower than expected containerboard prices, and slightly higher than expected pulp prices. Paper prices were in line with expectations,” said Mr. Laprade.
With this changes, he lowered his target prices for these stocks:
- Canfor Corp. (“sector outperform”) to $30 from $33. The average is $31.50.
- Cascades Inc. ( “sector outperform”) to $12 from $13. Average: $10.25.
- Interfor Corp. ( “sector outperform”) to $30 from $36. Average: $36.17.
- Western Forest Products Inc. ( “sector perform”) to $1.75 from $2. Average: $1.57.
- West Fraser Timber Co. Ltd. ( “sector outperform”) to $132 from $138. Average: $102.74.
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