Clearwater Paper upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded Clearwater Paper (CLW) to Outperform from Sector Perform with a price target of $37, down from $48. Clearwater’s “significant reset in valuation” reflects a challenging SBS market that may worsen with a significant capacity addition scheduled for mid-2025, but the firm sees an “asymmetric set-up for the stock” with expectations low, valuation at a trough, and a possibility that rationalization/conversion of industry capacity could tighten the market, the analyst tells investors.