SLVM - SEE Weyerhaeuser Sylvamo upgraded to Buy at BofA

2023-07-10 09:00:34 ET

SEE, formerly known as Sealed Air ( NYSE: SEE ), Weyerhaeuser ( WY ) and Sylvamo ( SLVM ) on Monday were upgraded to Buy from a previous investment rating of Neutral by analysts at Bank of America Securities. They said the makers of packaging, paper and forest products were currently undervalued:

• SEE ( SEE )

“SEE ( SEE ) is trading near multi-year lows on a relative basis – ( SEE ) traditionally sells for close to a 100% relative forward P/E multiple but it is currently at 57%,” George L. Staphos, analyst at BofA, said in a July 10 report. “We think this compensates investors for the continued demand risks.”

• Weyerhaeuser ( WY )

“Our upgrade of wood products and timber company Weyerhaeuser ( WY ) adds housing exposure in a risk-averse way given the value of timberlands,” Staphos said. The company’s yearly Western Timberlands Tour “increased our appreciation for Weyerhaeuser ( WY ) fundamental quality, innovation, and long-term carbon capture potential.”

• Sylvamo ( SLVM )

Sylvamo’s ( SLVM ) stock declined since December amid lower demand for graphic paper and price declines for uncoated freesheet paper, and “its current 4x EV/EBITDA multiple compensates for a lot of the downside risks on volume and pricing,” according to BofA.

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