Rayonier Advanced Materials’ analyst price target has been increased from $6.00 to $7.50. This reflects analysts’ improved outlook based on lower discount rates and slight upward revisions to projected revenue growth.
What's in the News
- Launched Enhanced Freezer Application for folding carton board. This new product is engineered for frozen food packaging with improved durability and moisture resistance, requires no coatings, and is made from certified forest fiber (Key Developments).
- Signed a Memorandum of Understanding with GranBio LLC to explore a cellulosic Sustainable Aviation Fuel facility in Jesup, Georgia. The facility would utilize proprietary bioconversion technologies and federal grant funding (Key Developments).
- Completed the repurchase of 2,570,449 shares, representing 5.01% of shares outstanding, for $39.72 million under an ongoing buyback program announced in 2018 (Key Developments).
Valuation Changes
- Fair Value Estimate: Increased from $6.00 to $7.50, reflecting higher analyst confidence in the company's prospects.
- Discount Rate: Decreased from 11.47% to 10.64%, indicating reduced perceived risk in future cash flows.
- Revenue Growth: Increased slightly from 2.21% to 2.26% projected annually.
- Net Profit Margin: Declined marginally from 9.45% to 9.37% in future projections.
- Future P/E Ratio: Increased from 3.79x to 4.67x, suggesting a higher valuation multiple for forward earnings.
Disclaimer
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