Mercer price target lowered to $5 from $6 at CIBC
CIBC analyst Hamir Patel recently adjusted the price target for Mercer (MERC) from $6 to $5, citing lower estimates. Despite the uncertainty surrounding global pulp demand due to the ongoing trade tensions between the U.S. and China, Mercer stands out with its modern NBSK pulp mills, which are considered among the best in the world. In addition, the company’s assets hold growing scarcity value as many Canadian peers face significant capital expenditure requirements and have limited untapped softwood fiber reserves outside of Russia.
Mercer has a track record of achieving accretive growth and is poised to benefit from a potential rebound in European lumber and pallet demand in 2026. The company is also expected to see increased deliveries from its expanding mass timber platform, further enhancing its growth prospects.
CIBC maintains a Neutral rating on Mercer’s shares, highlighting the company’s strengths amidst a challenging market environment. The firm’s analysis underscores Mercer’s strategic positioning and growth potential, making it an interesting prospect for investors looking for opportunities in the pulp and timber industry.
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