Target 19 Bucks almost triple from here
Fortress Paper Ltd. will need to give investors a reason to believe in the stock after missing third-quarter earnings expectations, Raymond James analyst Daryl Swetlishoff says.
“Repeated disappointing operational performances at the Landqart security paper and Thurso dissolving pulp mills have eroded investor confidence, putting the stock firmly into the ‘show me’ category,” he wrote in a research note. “While we do not regard the story as fundamentally broken, we acknowledge that a return in investor confidence will require a ‘break-through’ quarter, which, given operational and commodity price challenges we do not expect to be imminent.”
Investors would be relieved if Fortress sold the money-losing Landqart mill, which is possible in the first half of 2013, he said.
Downside: Mr. Swetlishoff cut his target price to $19 from $27 and his rating to “market perform” from “outperform.”