Sidoti Starts Sylvamo Corp. (SLVM) at Buy

Sidoti analyst Daniel Harriman initiates coverage on Sylvamo Corp. (NYSE: SLVM) with a Buy rating and a price target of $100.00.

The analyst comments "As an independent, publicly traded company, we believe Sylvamo is well positioned to benefit from the global structural pruning of uncoated freesheet (UFS) capacity due to its concentrated focus on UFS and its premier assets in attractive regions. We believe Sylvamo is not only positioned to withstand bouts of industry volatility, but also enhance its relative positioning, given the strength of its existing asset base and narrowly focused commitment to the UFS paper grade. Sylvamo is placed to intelligently invest in a space where disinvestment has become the norm. Investors can argue about the end point, but not the path, of Sylvamo’s journey forward in UFS, in our view. We understand some concerns relative to the terminal value of Sylvamo’s franchise, but the company’s path should be marked by robust cash flows. Moreover, SLVM’s forestlands in Brazil serve as a long-term repository of shareholder value. We initiate coverage of Sylvamo with a Buy rating and $100 price target."

For an analyst ratings summary and ratings history on Sylvamo Corp. click here. For more ratings news on Sylvamo Corp. click here.

Shares of Sylvamo Corp. closed at $84.25 yesterday.

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