CA - Canfor surges on plans to restructure B.C. operations CIBC upgrade

Canfor ( OTCPK:CFPZF ) +11.7% in Toronto trading Thursday's after the forest products company said it will permanently close its Chetwynd sawmill and pellet plant in British Columbia and temporarily shut its Houston sawmill "for an extended period" to redevelop the site.

Both facilities will wind down operations and close by early Q2 and remove ~750M board feet of annual production capacity.

Additionally, Canfor ( OTCPK:CFPZF ) and Canadian lumber peers Interfor ( OTCPK:IFSPF ) and West Fraser Timber ( NYSE: WFG ) were upgraded to Outperform from Neutral at CIBC on expectations that moderating mortgage rates should lift homebuilding in the U.S.

The higher ratings come "with housing affordability improving and a significant removal of B.C. lumber industry capacity from Canfor," CIBC analyst Hamir Patel wrote.

Citing softening lumber markets and high fiber costs, West Fraser Timber ( WFG ) said earlier this month it will indefinitely curtail its Perry sawmill in Florida .

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