RFP - Resolute Forest Products: There's More Upside In 2022

• RFP in the past years has made remarkable progress deleveraging its balance sheet by paying off a significant part of its long-term debt, bringing it down to sustainable and healthy levels.
• The company materially reduced its pension funding deficit to $457 million within 2021, supporting the upcoming higher interest rate environment.
• Wood-related products now account for almost 50% of revenues, and the housing boom and favorable demographics of Millennials further support the elevated demand and growth in the following years.
• RFP remains undervalued by almost any valuation metric. Thus considering the recent developments, the company deserves at least a 1.10x P/B multiple, suggesting a target price of $19.40 and a 43% upside from current levels.

For further details see: