Canfor Corporation is a leading Canadian integrated forest products company based in Vancouver, British Columbia with interests in over 32 facilities in British Columbia, Alberta, Quebec, Washington State and North and South Carolina.
Tue 11:42 am by Mourad Haroutunian1
Dundee Capital confirmed its buy recommendation on () after the Canadian forest product company agreed to acquire Anthony Forest Products (AFP) for $93.5mln including $15mln working capital.
remains one of our preferred stocks in the sector, analyst Stephen Atkinson wrote in a research note to investors on Tuesday. The company is acquiring profitable assets.
The Vancouver, British Columbia-based company said on Monday that the transaction is expected to close in the fourth quarter.
AFP operates 6 facilities producing lumber, engineered wood and wood chips with a combined capacity of 250 mmbf equivalent.
AFP owns a sawmill located in Urbana, Arkansas which produces premium Southern pine lumber and has an operational capacity of 150 mmbf per year.
It also owns laminating facilities in El Dorado, Arkansas and Washington, Georgia.
Dundee Capital left its price target on the stock at $27.00 and raised its earnings estimate for 2016 to $1.90 per share from $1.82 per share.
Shares were trading down 0.6% at $16.34 at 11:41 a.m. in New York.
The stock has lost 45% so far this year.
References
- ^ Mourad Haroutunian (www.proactiveinvestors.com)
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