RYAM - Rayonier Advanced Materials: Tariff Fears Overdone, Initiate With Strong Buy
2025-06-27 12:08:32 ET
Distress Mispriced
We initiate on Rayonier Advanced Materials Inc. ( RYAM ) with a s trong buy rating and $10 PT. RYAM is a global producer of high-purity cellulose and specialty polymers used in applications ranging from pharmaceuticals and LCDs to personal care and advanced packaging. The disconnect between current sentiment and Fwd fundamentals creates a rare asymmetry in RYAM: instead of consensus fixation on recent tariff fallout and near-term volume contraction, investors overlook a pivotal recovery already in play underneath. Market consensus hysterically fixates on $40m top-line cash drag from retaliatory tariffs + temporary Chinese destock drags rather than on the resilience of RYAM's specialty cellulose platform (end-markets from food ingredients to bio-based plastics, where secular demand trends remain strikingly robust....
Rayonier Advanced Materials: Tariff Fears Overdone, Initiate With Strong Buy