CIBC has revised its rating on Canfor Corporation (CFPZF, Financial), shifting from an "Outperformer" status to "Neutral". The adjustment comes alongside a new price target of C$16, a decrease from the earlier C$19 projection.
The decision is influenced by expectations that the duty rate on Canfor’s Canadian sawmills could escalate to 46.5% by the end of the year. This anticipated increase presents a more significant risk to Canfor's earnings compared to its industry peers.
Additionally, the potential weakening of pricing power for spruce pine fir producers amid unfavorable macroeconomic conditions is seen as another factor that could impact the company's future performance negatively.
