Garbage downgrade by CIBCI find it funny these guys go from "outperform" to "neutral" and keep their target price unchanged. However great support bounce this morning. i was able to add this time around on the drop. I attached their downgrade note below.
At the same time, Mr. Patel downgraded Western Forest Products Inc.(WEF-T) to "neutral" from "outperformer" based on both share price appreciation and "growing indications that a near-term resolution to the softwood lumber dispute seems unlikely."
"Trade sources indicate softwood lumber negotiations between Canada and the U.S. have soured in the last week as the U.S. has moved far off the 'handshake deal' that was initially on the table in mid-August," he said. "With Secretary Ross apparently ready to wash his hands of the entire file (given the difficulties dealing with the hardliners in the U.S. Lumber Coalition), the only deal on the table (28-per-cent hard quota phased in within three years) for Canada right now is likely unacceptable to most parties north of the border. While lumber negotiations have been continuing on a separate track to NAFTA, we believe NAFTA talks have now reached a stage where it would be very difficult to wrap up a new lumber deal while NAFTA is still being re-negotiated (and is unlikely to be concluded until 2019)."
He kept a $3 target, which is 9 cents more than the consensus.
"We had previously upgraded Western FP on June 5, 2017 when the shares were trading at $2.17 due to the company's positioning on the trade file in a strong cedar market, attractive valuation and upside to a potential new quota-based SLA (which could result in structurally higher margins for WEF). With Western now approaching our $3.00 price target, we see limited catalysts and … reduce our rating to Neutral."