TD Securities Sticks to Their Sell Rating for Tembec Inc.

By Austin Angelo

The Materials sector company, Tembec Inc. (TSX: TMB), has received a rating update from a Wall Street analyst on May 26. Analyst Sean Steuart from TD Securities remains bearish on the stock and has a C$4.25 price target.

Steuart commented:

“We do not rule out the potential for a modest bump to RYAM’s bid, but given Tembec’s broad operating platform and focus on specialty pulp markets, we do not believe that another bidder will emerge.”

Steuart has an average return of 45.9% when recommending Tembec Inc..

According to, Steuart is ranked #1406 out of 4571 analysts.

Tembec Inc. has an analyst consensus of Hold, with a price target consensus of C$4.25.

Tembec Inc.’s market cap is currently C$417M and has a P/E ratio of 11.8.

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 Monday at $4.17, close to its 52-week high of $4.34.