Royal Bank Of Canada Forecasts Strong Price Appreciation for Sylvamo (NYSE:SLVM) Stock

Key Points

• Royal Bank of Canada raised its Sylvamo price target from $35 to $37 but maintained a “sector perform” rating; the new target implies 6.8% downside from the stock’s $39.70 price.
• Analyst views are mixed: the consensus rating is “Hold” with a $43.25 price target, while Truist and Wells Fargo set $47 targets and rated the stock Buy and Overweight, respectively.
• Sylvamo’s latest quarterly EPS of $1.33 beat estimates of $1.13, but revenue of $645 million fell short of estimates and was down 23.8% year over year.

Sylvamo (NYSE:SLVM - Get Free Report) had its target price increased by Royal Bank Of Canada from $35.00 to $37.00 in a research note issued to investors on Monday, Benzinga reports. The firm currently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price indicates a potential downside of 6.80% from the stock's current price.

A number of other equities research analysts also recently issued reports on SLVM. Truist Financial reiterated a "buy" rating and set a $47.00 price target (up from $40.00) on shares of Sylvamo in a research report on Monday. Zacks Research upgraded Sylvamo from a "strong sell" rating to a "hold" rating in a report on Monday, October 12th. Weiss Ratings restated a "sell (d+)" rating on shares of Sylvamo in a report on Wednesday. Wall Street Zen raised Sylvamo from a "sell" rating to a "hold" rating in a research note on Sunday, August 2nd. Finally, Wells Fargo & Company assumed coverage on Sylvamo in a report on Wednesday, September 16th. They set an "overweight" rating and a $47.00 price objective for the company. Two equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $43.25.

Sylvamo Stock Up 0.8%

Shares of NYSE SLVM opened at $39.70 on Monday. The stock has a market capitalization of $1.58 billion, a price-to-earnings ratio of -8.80, a price-to-earnings-growth ratio of 1.85 and a beta of 0.87. Sylvamo has a 52 week low of $30.40 and a 52 week high of $56.80. The firm has a 50-day moving average price of $34.01 and a 200 day moving average price of $39.77. The company has a quick ratio of 0.95, a current ratio of 1.29 and a debt-to-equity ratio of 1.16.

Sylvamo (NYSE:SLVM - Get Free Report) last issued its earnings results on Friday, November 6th. The company reported $1.33 earnings per share for the quarter, topping the consensus estimate of $1.13 by $0.20. Sylvamo had a negative net margin of 5.81% and a positive return on equity of 8.36%. The company had revenue of $645.00 million for the quarter, compared to analyst estimates of $817.79 million. During the same period in the prior year, the business posted $1.44 earnings per share. The firm's revenue for the quarter was down 23.8% compared to the same quarter last year. Equities research analysts anticipate that Sylvamo will post 1.32 EPS for the current fiscal year.

Hedge Funds Weigh In On Sylvamo

Hedge funds have recently added to or reduced their stakes in the business. Van ECK Associates Corp raised its position in Sylvamo by 3.2% during the second quarter. Van ECK Associates Corp now owns 13,428 shares of the company's stock worth $508,000 after acquiring an additional 411 shares during the last quarter. Farther Finance Advisors LLC lifted its holdings in shares of Sylvamo by 68.8% in the third quarter. Farther Finance Advisors LLC now owns 1,094 shares of the company's stock valued at $36,000 after purchasing an additional 446 shares in the last quarter. Signaturefd LLC lifted its holdings in shares of Sylvamo by 54.9% in the third quarter. Signaturefd LLC now owns 1,380 shares of the company's stock valued at $45,000 after purchasing an additional 489 shares in the last quarter. Exchange Traded Concepts LLC grew its position in shares of Sylvamo by 8.4% in the second quarter. Exchange Traded Concepts LLC now owns 6,697 shares of the company's stock valued at $253,000 after purchasing an additional 519 shares during the last quarter. Finally, Royal Bank of Canada grew its position in shares of Sylvamo by 11.4% in the first quarter. Royal Bank of Canada now owns 6,348 shares of the company's stock valued at $268,000 after purchasing an additional 648 shares during the last quarter. 91.16% of the stock is currently owned by hedge funds and other institutional investors.

Sylvamo Company Profile

Sylvamo Corporation is a global producer of uncoated paper products. The company manufactures papers used for printing, copying, writing, publishing, commercial applications, notebooks, envelopes and other everyday communication needs. Its portfolio includes branded and private-label products serving businesses, retailers, publishers, printers and consumers.

Sylvamo operates paper mills and related facilities in North America, Latin America and Europe, with products sold to customers in numerous markets worldwide.

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