JP Morgan raised its target price on Domar to reflect strength in global pulp markets and reiterates an Overweight rating on the stock. :theflyonthewall.com
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Domtar FY10 outlook: pulp demand will remain strong in the short-term
We expect that the increased economic activity will partially offset the secular decline in paper demand in 2010 and that pulp demand will remain strong in the short-term. We should also benefit from the recently announced price increases in the upcoming quarters. The economic recovery being slow and patchy, Domtar will continue to manage its business conservatively. Due to the seasonality of the business and the impact of the price increases being implemented, we expect to make working capital investments in Q1 of 2010. :theflyonthewall.com