Canfor Corp

CFP: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 17.00	Dgyt	Vqmzryt

Canfor Earnings: Higher Interest Rates Constrain Near-Term Lumber Demand, but Shares Look Cheap

Spencer Liberman

Nov 3, 2023

No-moat-rated Canfor Corporation reported lackluster operating results for the third quarter. Net sales fell 21% year over year as lumber markets remain pressured amid a slowdown in new residential construction. Canfor's operating results were also constrained by persistent weakness in its pulp and paper business during the quarter. Despite some marginal improvements, we expect lumber markets to remain pressured for much of next year as higher interest rates constrain new residential construction and freeze existing home sales. As such, we maintain our CAD 27 fair value estimate.

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