Clearwater Paper: Pricing, Supply Tightening And Lower Net Debt Support The Recovery Case

Mare Evidence Lab 6.17K Followers Follow Summary Q2 profitability remained weak, but industry utilization improved, and lower imports point to a healthier supply-demand balance. Two announced price increases could provide a meaningful EBITDA uplift as indexed contracts reset over the coming quarters. Cost savings, positive free cash flow and lower net debt strengthen the balance sheet despite continued operating pressure. Our blended valuation still leaves substantial upside, supporting the Buy rating after the recent share-price recovery. tifonimages/iStock via Getty Images In our last update, we reiterated our positive view on Clearwater Paper Corporation ( CLW ). Our readers know we like paper companies, especially when the market has beaten them down. Clearwater Paper is suffering from lower This article was written by Mare Evidence Lab 6.17K Followers Follow Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.