UPDATE: Deustche Bank Upgrades Raynoier On Discounted Downside In Specialty Cellulose

In a report published Wednesday, Deutsche Bank analyst Mark Wilde upgraded Rayonier (NYSE: RYN) from a Sell rating to a Hold rating while maintaining a price target of $47.00.

In the report, Deutsche Bank says "With RYN's market capitalization down nearly $1.8B since the Q3 conference call, we believe the market is heavily discounting downside in specialty cellulose. It's hard to know for certain where cellulose specialty prices will settle out. In our October 25th note, we estimated that RYN's 2014 prices would decline by $100/mton and that “trend” pricing for cellulose specialties was apt to be in the $1,500-1,600/mton range. We expect to refine these numbers as trends inside the relatively-closed CS market become clearer. For now, we think the valuation approach laid-out in our 10/25 note remains valid. However, given the current price of RYN, we are upgrading from Sell to Hold."

Rayonier closed on Wednesday at $43.66.