UPDATE: D.A. Davidson & Co. Reiterates Buy Rating, Lowers PT on Domtar Corporation on Valuation

In a report published Friday, D.A. Davidson & Co. analyst Steven Chercover reiterated a Buy rating on

, but lowered the price target from $62.50 to $54.00. In the report, D.A. Davidson & Co. noted, “Reported Q2-14 operating earnings were $0.61, compared to $0.24 in the prior year (y/y) and $0.64 last quarter. Earnings were well below our expectations of $0.86. Variance to our model was mixed. Revenue was 3% below our thoughts, which was primarily on the Pulp and Paper business. Pricing for uncoated free sheet was less than modeled. During the quarter it took 51,000 tons of market related downtime due to increased competition from imported paper. Personal Care also underperformed expectations as higher input costs and start-up expenses of a new product line hampered results.” Domtar Corporation closed on Thursday at $38.64.