Mercer downgraded to Neutral from Outperform at Credit Suisse

Credit Suisse analyst Andrew Kuske downgraded Mercer to Neutral from Outperform with a price target of $15.50, down from $18.50, ahead of the Q4 results on February 16. Mercer’s exposure to several areas with greater fiber costs does not bode well for financial generation, the analyst tells investors in a research note. The company’s smaller lumber business should benefit from renewed positive momentum, but that unit is small relative to the influence of the pulp business, the firm contends. Given some of the near-term pressures it downgrades the shares.