CLW - Clearwater Paper plunges to 21-month low; analyst warns of lower free cash flow

Clearwater Paper (CLW -15%) plunges to its lowest in nearly two years after reporting better than forecast Q4 results following Tuesday's close but saying it is facing "significant inflation and other supply chain disruptions" in its consumer tissue and bleached paperboard businesses. RBC Capital downgraded shares to Sector Perform from Outperform with a $35 price target, cut from $50, saying it now expects to see reduced free cash flow generation from the company. "Heavier than expected maintenance spending requirements and a head-fake in pulp prices are likely to result in reduced FCF generation over the next 12-18 months," according to RBC's Paul Quinn. BMO Capital came out in defense of the company, upgrading the stock to Outperform from Market Perform with a $40 PT and saying the selloff was overdone. In an analysis published on Seeking Alpha, Mare Evidence Lab says Clearwater Paper has found it difficult in the past to fully pass

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Clearwater Paper plunges to 21-month low; analyst warns of lower free cash flow