Domtar downgraded to Neutral from Buy at Goldman Goldman lowered the Paper & Forest Prodcucts sector to Neutral and downgraded Domtar as it no longer expects producers to pass through uncoated freesheet price increases and views valuation as reasonable. Price target remains $89.
Domtar sees paper shipments to trend with market demand in 2H15 The company said, "Looking into the second half of 2015, Domtar paper shipments are expected to trend with market demand and should benefit from lower import volumes in North America. We expect some short-term pricing volatility in pulp, as normal seasonal factors in certain markets take hold. Inflation on input costs is expected to be relatively flat; fiber costs will remain high in certain markets, but are not expected to increase further, while energy costs should remain favorable. Personal Care is expected to benefit from further cost savings and market growth, but the segment will be impacted by some seasonality in the third quarter."