KeyBanc Assigns a Hold Rating on Clearwater Paper

By Jason Carr

KeyBanc analyst Adam Josephson assigned a Hold rating to Clearwater Paper (NYSE: CLW) today. The company’s shares opened today at $44.75, close to its 52-week low of $43.60.

Josephson said:

“We are again reducing our estimates for Clearwater Paper (CLW) following its recent negative pre-announcement. We expect some of the pressures that plagued the Company in 3Q17 (pulp and transportation prices are going up and tissue market conditions are quite challenging, among other factors) to persist in 4Q, such that we are significantly reducing our estimates for both quarters. We are reducing our 2018 estimates for the same reason. On our revised estimates, CLW will not be in compliance with its debt covenants beginning in 4Q17. Key Investment Points We are reducing our 3Q17 adj. EBITDA estimate from $43M to $35M and our 4Q17 estimate from $58M to $51M, such that our 2017 estimate is going from $196M to $180M.”

According to, Josephson is a 3-star analyst with an average return of 3.0% and a 39.1% success rate. Josephson covers the Consumer Goods sector, focusing on stocks such as International Paper Co, Avery Dennison Corp, and Colgate-Palmolive.

Currently, the analyst consensus on Clearwater Paper is Hold and the average price target is $50, representing an 11.7% upside.

In a report issued on October 8, RBC Capital also reiterated a Hold rating on the stock with a $50 price target.

The company has a one-year high of $68.40 and a one-year low of $43.60. Currently, Clearwater Paper has an average volume of 91.17K.

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Clearwater Paper Corp. engages in the manufacturing and selling of private label tissue, paperboard, and pulp-based products. It operates through the Consumer Products and Pulp and Paperboard segments. The Consumer Products segment manufactures and sells a complete line of at-home tissue products as well as Away From Home products.