Update shared on 03 Dec 2025
Fair value Increased 20%Analysts have raised their price target on Rayonier Advanced Materials from 7.50 dollars to 9.00 dollars. This change reflects improved fair value assumptions, a slightly lower discount rate, and a higher expected future price to earnings multiple.
What's in the News
- Launched an Enhanced Freezer Application for folding carton board tailored to frozen food packaging needs, building on RYAM's existing Kallima folding grade (Key Developments).
- New board is engineered to withstand temperatures as low as -18degC (0degF) while maintaining structural integrity and resisting delamination in freezer conditions (Key Developments).
- Material offers natural moisture and condensation resistance without additional coatings or plastic extrusion, supporting cost efficiency and easier converting (Key Developments).
- Board provides a premium print surface suitable for high quality graphics across a range of frozen food applications, from ready meals to protein trays (Key Developments).
- Product is made from responsibly sourced, certified forest fiber, aligning with growing demand for sustainable packaging in the expanding global frozen food market (Key Developments).
Valuation Changes
- Fair Value Estimate has risen from 7.50 dollars to 9.00 dollars, a meaningful upward revision of the target price.
- Discount Rate has fallen slightly from 11.73 percent to about 11.16 percent, reflecting a modestly lower perceived risk profile.
- Revenue Growth assumptions are effectively unchanged at around 4.77 percent, indicating a stable outlook for top line expansion.
- Net Profit Margin expectations remain essentially flat at roughly 6.75 percent, suggesting no material shift in projected profitability.
- Future P/E multiple has increased from about 6.41 times to roughly 7.58 times, indicating a modestly higher valuation placed on expected earnings.
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