Canfor initiated with a Sector Perform at Scotiabank

Scotiabank analyst Ben Isaacson initiated coverage of Canfor with a Sector Perform rating and C$22 price target. The analyst started the Canadian paper and forest products sector with a “cautiously optimistic view that the forestry cycle has bottomed.” While not convinced a cycle recovery must start tomorrow, the firm is confident it will come, “based on structural positives already unfolding.” Scotiabank is bullish on the mid-term outlook but only cautiously optimistic near-term data points will support meaningful incremental funds flow into the sector.