RBC double-upgrades Mercer to 'outperform' as pulp outlook improves

Mercer International

31/01/2022 07:06

** RBC double-upgrades pulp producer  MERC.O  to
"outperform" from "underperform"; hikes PT to $15 from $8
    ** Brokerage says outlook for pulp improved rapidly in the
short term as supply disruptions may stoke prices higher
    ** Adds that the medium term also looks healthier due to the
delayed start-up of new capacity
    ** "We also expect Mercer to see unusual one-time gains from
European power prices and a repeat of strong lumber prices," RBC
says 
    ** Mercer stock up ~17% in 2021

 (Reporting by Aniruddha Ghosh in Bengaluru)
 ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))