RBC Capital Markets raises Clearwater Paper share price target after strong first-quarter results

On Tuesday, RBC Capital Markets revised its outlook on Clearwater Paper Co. (NYSE: ) stock, raising its price target to $42 from the previous $41 while maintaining its industry perform rating. The revision comes after the company released first-quarter financial results, which showed stronger-than-expected results.

Clearwater Paper reported first-quarter 2024 adjusted EBITDA of $61.5 million, beating RBC Capital Markets' forecast of $57.5 million and closely in line with the high end of the company's own guidance range of $53 million to $63 million. This performance led to the investment firm's decision to increase its target price.

The company's solid operating momentum and positive developments in the paperboard market were cited as key reasons for the price target increase. Clearwater Paper's recent financial success reflects its ability to navigate the market effectively, leading the company to decide to revise its expectations for the stock's value.

The Industry Performance Rating indicates that RBC Capital Markets believes Clearwater Paper's stock is likely to perform in line with industry averages. The rating remains unchanged despite a slight increase in price target, indicating that the company's current market position and potential growth are being recognized but are consistent with broader industry performance.

Investment Professional Insights

Given that RBC Capital Markets recently raised its price target on Clearwater Paper Corporation, investors may find more context in live indicators and InvestingPro Tips. The company has a high Piotroski score of 9, indicating strong financial health. Management's aggressive share repurchases and high shareholder yields are strategic moves and may signal confidence in the company's future performance. Additionally, the valuation suggests strong free cash flow yields, which is often an attractive feature for investors looking for long-term value.

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InvestingPro Data further enriches our understanding of Clearwater Paper's financial health. With a market capitalization of approximately $673.82 million over the trailing 12 months to Q1 2024 and a price-to-earnings (P/E) ratio of 6.34, the company appears to be efficiently valued relative to its earnings. Additionally, a PEG ratio of 0.05 suggests the stock is likely undervalued based on its projected growth rate, while a P/B ratio of 0.98 suggests the stock is trading close to its book value.

For those interested in digging deeper, there are some additional InvestingPro Tips available that can help you learn more about Clearwater Paper's performance and prospects. The company's trailing twelve month profitability and strong returns across different time periods, including the trailing three months and five years, are particularly noteworthy. To explore these tips and more, visit our dedicated page on InvestingPro.Remember to use the coupon code PRONEWS24 Get an additional 10% discount on annual or two-year Pro and Pro+ subscriptions to gain even more valuable investment insights.

This article was generated with the support of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.

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