Mercer downgraded to Sell from Hold at TD Cowen

TD Cowen downgraded Mercer (MERC) to Sell from Hold with a price target of $2.25, up from $2. Despite pulp markets nearing a cyclical floor, high balance sheet leverage and expected negative free cash flow make the recent share price surge difficult to justify, with limited paths to deleveraging, the analyst tells investors in a research note. Risk/reward appears less attractive relative to other opportunities in the sector, the firm adds.