Deutsche Bank Reports Summaries
080422 Deutsche Bank Report - Q1 Preview For The Tree
What To Expect
We are generally looking for poorer results this quarter
relative to the previous quarter. The only companies expected to
generate positive earnings in Q1/08 are International Paper,
Domtar, Mercer and Cascades. However, of these only Cascades is
expected to post improving results.
We have made a number of revisions to our commodity price
forecasts. Positive changes include upward revisions to pulp,
newsprint and uncoated free sheet prices. On the negative side, we
have lowered our lumber price forecast and increased prices for
most grades of recovered paper.
We have increased our price targets on Catalyst and Tembec, but
have reduced them on AbitibiBowater, Weyco, Cascades, Interfor,
Louisiana- Pacific and Canfor. As of April 22, we have upgraded
Catalyst from SU to SP and Norbord from SP to SO.
Our top three picks are Mercer International, Domtar, and
International Paper, while our bottom three are Tembec, Fraser
Papers and Canfor. We maintain our Underweight recommendation on
the sector as a whole.