BofA upgrades Sylvamo stock rating on European divestiture plan

Investing.com · 2026-11-06 14:50 UTC

BofA upgrades Sylvamo stock rating on European divestiture plan

Investing.com - BofA Securities upgraded Sylvamo Corp. (NYSE:SLVM) to Buy from Neutral on Wednesday with a price target of $42.00. The stock currently trades at $37.70, and according to InvestingPro analysis, appears undervalued with a Fair Value of $44.45. The $1.31 billion company offers investors a significant 5.44% dividend yield, and InvestingPro Tips highlight that management has been aggressively buying back shares—one of 8 additional exclusive tips available to subscribers.

The upgrade reflects the firm’s positive outlook on the company’s third-quarter results and potential value from divesting its European business. Sylvamo announced Wednesday it received a binding offer from Midas Atlantic Partners, in partnership with The Najafi Companies, to acquire its European operations.

The proposed transaction includes the Saillat, France, and Nymolla, Sweden, mills, as well as related forestry and supporting operations. Under the terms, Sylvamo would transfer the business with an agreed level of working capital and cash in exchange for the right to receive 20% of future distributions from the business.

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