Royal Bank Of Canada Issues Pessimistic Forecast for Mercer International (NASDAQ:MERC) Stock Price

Key Points

• Royal Bank of Canada cut Mercer International’s price target from $1.25 to $1.00 while keeping a sector perform rating, implying only modest upside from current levels.
• The stock fell 8.2% to $0.90, matching its 52-week low, as investors weighed weak performance and a heavy debt load.
• Mercer’s latest quarterly results missed expectations, with EPS of -$0.78 versus the estimated -$0.74 and revenue slightly below forecast, reinforcing a broadly Strong Sell analyst consensus.

Mercer International (NASDAQ:MERC - Get Free Report) TSE: MRI.U had its price objective cut by Royal Bank Of Canada from $1.25 to $1.00 in a note issued to investors on Monday,Benzinga reports. The brokerage presently has a "sector perform" rating on the basic materials company's stock. Royal Bank Of Canada's price objective suggests a potential upside of 11.11% from the stock's current price.

A number of other research analysts also recently weighed in on the company. Weiss Ratings restated a "sell (e+)" rating on shares of Mercer International in a research note on Friday, March 27th. TD Cowen cut shares of Mercer International from a "hold" rating to a "sell" rating and raised their target price for the company from $2.00 to $2.25 in a research note on Wednesday, January 21st. Finally, TD Securities lowered shares of Mercer International from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 18th. Two investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Strong Sell" and an average price target of $2.19.

Mercer International Stock Down 8.2%

MERC stock traded down $0.08 during midday trading on Monday, hitting $0.90. The company's stock had a trading volume of 394,787 shares, compared to its average volume of 574,852. The company's fifty day moving average price is $1.36 and its 200 day moving average price is $1.80. The company has a debt-to-equity ratio of 23.58, a current ratio of 2.17 and a quick ratio of 1.22. Mercer International has a twelve month low of $0.90 and a twelve month high of $4.47. The stock has a market capitalization of $60.28 million, a P/E ratio of -0.11 and a beta of 0.53.

Mercer International (NASDAQ:MERC - Get Free Report) TSE: MRI.U last posted its quarterly earnings data on Thursday, May 7th. The basic materials company reported ($0.78) EPS for the quarter, missing analysts' consensus estimates of ($0.74) by ($0.04). The business had revenue of $489.30 million for the quarter, compared to analyst estimates of $493.00 million. Mercer International had a negative return on equity of 136.20% and a negative net margin of 28.51%. As a group, equities research analysts predict that Mercer International will post -2.17 EPS for the current year.

Hedge Funds Weigh In On Mercer International

Several large investors have recently modified their holdings of the stock. Iat Reinsurance Co. LTD. lifted its position in Mercer International by 1.3% during the third quarter. Iat Reinsurance Co. LTD. now owns 16,700,000 shares of the basic materials company's stock worth $48,096,000 after acquiring an additional 220,000 shares during the last quarter. Millennium Management LLC boosted its holdings in shares of Mercer International by 16.1% during the 3rd quarter. Millennium Management LLC now owns 994,974 shares of the basic materials company's stock valued at $2,866,000 after acquiring an additional 137,906 shares in the last quarter. Geode Capital Management LLC increased its holdings in Mercer International by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 561,001 shares of the basic materials company's stock worth $1,111,000 after purchasing an additional 14,603 shares in the last quarter. Gabelli Funds LLC bought a new position in Mercer International in the second quarter valued at about $1,804,000. Finally, Jump Financial LLC raised its position in Mercer International by 340.6% in the second quarter. Jump Financial LLC now owns 276,837 shares of the basic materials company's stock valued at $969,000 after purchasing an additional 214,008 shares during the last quarter. 85.79% of the stock is owned by institutional investors.

Mercer International Company Profile

Mercer International Inc is a publicly traded pulp producer headquartered in Vancouver, British Columbia. Listed on the NASDAQ under the symbol MERC, the company specializes in the manufacture of Northern Bleached Softwood Kraft (NBSK) pulp and dissolving pulp for use in tissue, specialty paper and textile applications.

Mercer's core business activities include the operation of integrated pulp mills in North America and Europe. Its production portfolio encompasses NBSK pulp, renowned for its strength and versatility, and dissolving pulp, which serves as a key raw material in the manufacture of viscose, cellulose acetate and other specialty products.

The company's facilities are located in British Columbia and the U.S.

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