RBC Capital Believes Tembec Inc. (TSX: TMB) Still Has Room to Grow

By Ryan Adsit

Today, an analyst has provided a rating update for the Materials sector company, Tembec Inc. (TSX: TMB). The company received a Buy rating from RBC Capital’s analyst Paul Quinn, with a C$4.25 price target.

According to TipRanks.com, Quinn is a top 100 analyst with an average return of 17.9% and a 74.0% success rate. Quinn covers the Consumer Goods sector, focusing on stocks such as Mercer International Inc, International Paper Co, and Meadwestvaco Corp.

Tembec Inc. has an analyst consensus of Moderate Buy, with a price target consensus of C$4.13.

Based on Tembec Inc.’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$387 million and quarterly net profit of C$24 million. In comparison, last year the company earned revenue of C$380 million and had a net profit of C$27 million.

Tembec, Inc. is a forest products company. It manufactures and markets forest products, including lumber, paper pulp, and paper and specialty cellulose pulp. The company operates its business through the following segments: Forest Products, Specialty Cellulose Pulp, Paper Pulp, Paper and Corporate. The Forest Products segment is focused on the production of SPF lumber. It also produces small amounts of engineered and wood products. The Specialty Cellulose Pulp segment produces cellulose pulps. The Paper Pulp segment manufactures and markets of high-yield pulps. The Paper segment consists of production and sale of coated bleached board and newsprint. The Corporate segment include expenses related to idled facilities, which includes costs related to custodial, site security, legal, pension administration and remediation activities. Tembec was founded by Frank A. Dottori on July 12, 1972 and is headquartered in Montreal, Canada.

The company’s shares closed last Tuesday at $2.92, close to its 52-week high of $3.12.