TD's take - "Impressive" "We consider the Q2/F17 results as a high-quality beat, characterized
by better-than-expected margins across most operating segments —
especially specialty cellulose. The results were even more impressive given
higher corporate costs (share-based compensation expense that was not included
in our estimate)."
Valuation
"Tembec is currently trading at 4.2x 2018E TEV/EBITDA versus the peer-group average
of 6.9x. We consider the discount excessive in light of the company’s free cash flow
profile."
The last paragraph implies what we all know -- an extra (6.9-4.2) = 2.7 * 200M = $5.40/share coming up. Boom.