Rayonier Advanced Materials has reached great entry point, says DA Davidson After Rayonier reported lower than expected Q1 EPS and estimated that its segment EBITDA would drop 25% versus its previous guidance for a 10% drop, DA Davidson cut its estimates for the company. However, the firm expects the company's prices to remain stable in 2015 and views the current stock price as compelling. The firm keeps a Buy rating on the shares.
Rayonier Advanced Materials announces three-year transformation initiative In 2016, the company is embarking on a three-year transformation initiative to significantly improve its cost structure and enhance cash flows. This initiative is being led by a cross-functional team reporting directly to the CEO. The team's focus is to increase the overall efficiency of the business to meet the near-term market challenges. The transformation initiative targets three-year cost savings of $75M-$90M. The 2016 guidance reflects the expected impact of the first year of the transformation initiative.