- Credit Suisse analyst Andrew M. Kuske upgraded Mercer International Inc. (NASDAQ:MERC) to Outperform from Neutral and raised the price target to $19 (an upside of 36%) from $18.50.
- The analyst believes Mercer faces many positives ranging from commodity prices (pulp, lumber, and power) to favorable FX rates and a rather attractive valuation.
- Kuske states that on a near-term basis, there are some concerns about the impact of a fire at the Stendal Pulp Mill and the impact of a potential economic recession.
- The analyst mentions that the recent downward movement in MERC’s stock provides an interesting opportunity for potential performance.
- Kuske believes that MERC’s various new business opportunities (like mass timber) are clearly interesting – albeit rather small at this stage in time.
- Price Action: MERC shares are trading higher by 12.75% at $13.97 on the last check Wednesday.
- Photo Via Company
