MERC - Mercer upgraded at Credit Suisse on opportunity following 7% stock drop

Mercer International ( NASDAQ: MERC ) +10.9% in Wednesday's trading after Credit Suisse upgraded shares to Outperform from Neutral with a $19 price target, citing "pulp positives aplenty" after shares slid 7% yesterday following a fire at the company's Stendal pulp mill .

Despite some near-term concerns around the impact of the fire and fears of a recession, Credit Suisse's Andrew Kuske sees many positives working for the company, including commodity prices, favorable foreign exchange rates and an attractive valuation.

Kuske believes Mercer's ( MERC ) power business is likely to be "very additive," while various new business opportunities such as mass timber are "clearly interesting, albeit rather small at this stage."

Mercer International's ( MERC ) Q1 adjusted earnings were $1.35/share on revenues of $592M .

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