Interfor: A bullish bet, despite its strong run
February 10, 2014
Investors hoping to build their portfolios by playing the U.S. housing recovery are snapping up shares of International Forest Products Ltd. as its production expands south of the border.
The stock hit a 20-year high on Monday and already bullish analysts hiked their target prices after the Vancouver-based company said it was buying two Georgia sawmills for $180-million (U.S.) from Ilim Timber Continental SA.
Shares of the company, known as Interfor, have risen nearly 90 per cent over the past year and are up about 1,200 per cent for anyone brave enough to have bought them during the depths of the last recession.
Regardless of that remarkable runup and concerns the U.S. recovery is still wobbly, analysts believe Interfor’s stock will continue to soar. All seven who cover the stock recommend it as a “buy,” citing a supply-demand crunch across the sector.
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