Sylvamo initiated with a Buy at Truist

Truist initiated coverage of Sylvamo (SLVM) with a Buy rating and $54 price target. With global paper capacity of about 2.8mn tons excluding offtake agreements with International Paper (IP) and market pulp capacity of about 410,0000 tons, Sylvamo is the second-largest producer of uncoated freesheet in North America, third-largest in Europe, and largest in Latin America, the analyst tells investors. Relative to peers, SLVM maintains a leading global low-cost position in UCFS and is well-positioned in Europe as currently rising pulp prices steepen the UCFS cost curve, the analyst added.