Canfor downgraded to Underperform from Sector Perform at Scotiabank

Scotiabank analyst Ben Isaacson downgraded Canfor (CFPZF) to Underperform from Sector Perform with a price target of C$15, down from C$19. Steep, unwarranted, and punishing U.S. tariffs on Canadian imports have brought another material economic risk to Canada’s already-declining softwood lumber industry, the analyst tells investors in a research note. The Trees are a small, niche space from a market cap perspective, and even if forestry companies end up ahead on an operating cash flow basis, it doesn’t mean there won’t be lasting negative impacts on the Canadian portfolios, including the possibility of further mill closures and job losses, Scotiabank says.