Mercer downgraded to Market Perform on pulp correction at Raymond James

Raymond James downgraded Mercer International to Market Perform from Outperform with a price target of $9, down from $13.50. The company reported “heavy” Q2 EBITDA miss amid the challenged macro backdrop, elevated end user inventories, and a series of pulp production disruptions, the analyst tells investors in a research note. The firm says pulp prices have now been in correction mode for nearly a full year, with downward pressure seeing a significant acceleration year-to-date as weak paper demand mated with an “underwhelming” China recovery.

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