SEE, Weyerhaeuser, Sylvamo upgraded to Buy at BofA
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SEE, formerly known as Sealed Air (NYSE:SEE), Weyerhaeuser (NYSE:WY) and Sylvamo (NYSE: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 in June “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.
Other stocks
Boise Cascade (NYSE:BCC) and Greif (NYSE:GEF) were upgraded to Neutral from a prior rating of Underperform by BofA. The bank kept its rating for Louisiana-Pacific (NYSE:LPX) at Underperform.
| Bank of America Securities rating changes, July 10 | |||
| Packaging, Paper and Forest Products | |||
| Upgrades | |||
| New | Old | ||
| SEE (SEE) | Buy | Neutral | |
| Weyerhaeuser (WY) | Buy | Neutral | |
| Sylvamo (SLVM) | Buy | Neutral | |
| Boise Cascade (BCC) | Neutral | Underperform | |
| Greif (GEF) | Neutral | Underperform | |
| Downgrades | |||
| New | Old | ||
| Amcor (NYSE:AMCR) | Underperform | Buy | |
| Ardagh Metal (NYSE:AMBP) | Neutral | Buy | |
| Ball (NYSE:BALL) | Neutral | Buy | |
| International Paper (NYSE:IP) | Underperform | Neutral | |
| Graphic Packaging (NYSE:GPK) | Neutral | Buy | |
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