Sylvamo (US:SLVM) Yahoo Finance·2025-12-15 04:45Core Viewpoint - Sylvamo Corp. (NYSE:SLVM) is identified as a promising small-cap value stock despite a significant year-to-date decline of 36.68%, with a Buy rating and a price target of $59 set by Bank of America Securities [1]. Group 1: Investment Outlook - Bank of America Securities updated the stock to Buy on November 21, highlighting significant catalysts for Sylvamo, including improved operating rates in North America due to the closure of Riverdale and Chillicothe facilities [2]. - Analyst George Staphos anticipates that North American operating rates could reach 90% by 2026, alongside a potential price increase of $40 per ton for uncoated free sheet paper expected in the second half of 2026 [2]. Group 2: Financial Performance - In the fiscal third quarter of 2025, Sylvamo reported a revenue decrease of 12.33% year-over-year to $846 million, which was $10.34 million above expectations, while the EPS of $1.44 fell short of consensus by $0.03 [3]. - Management indicated that a decrease in price and mix contributed to a $14 million decline during the quarter, primarily due to paper and pulp prices in Europe [3]. Group 3: Future Expectations - The company expects ongoing challenges in Europe to continue into the fourth quarter, but these are anticipated to be mitigated by increasing volumes in Latin America and North America [4]. - Sylvamo Corporation, founded in 1898 and headquartered in Memphis, specializes in the production and sale of uncoated paper and pulp across Europe, Latin America, and North America [4].