Shares of Rayonier Advanced Materials Inc (NYSE:RYAM) are trading up significantly this morning as the company made two pretty big announcements. First, they have settled an ongoing legal dispute with Eastman Chemical, their largest customer. Second, they’ve signed a new cellulose specialties purchase and sale agreement with Eastman which will extend for four years until December of 2019.
“For over 85 years we have worked closely and collaboratively with Eastman. We are pleased to have resolved our differences and entered into a new contract that continues our long and valued relationship through 2019,” said Paul Boynton, Chairman, President and CEO of Rayonier Advanced Materials. “We look forward to contributing to Eastman’s continued success for many years to come.”The stock is up 10.97% or $1.23 after the positive news, hitting $12.44 per share. About 198,756 shares traded hands. RYAM has declined 32.51% since April 28, 2015 and is downtrending. It has underperformed by 30.89% the S&P500.
Out of 2 analysts covering Rayonier Advanced Materials Inc (NYSE:RYAM), 0 rate it “Buy”, 0 “Sell”, while 2 “Hold”. This means 0 are positive. $10.0 is the highest target while $10 is the lowest. The $10 average target is -19.61% below today’s ($12.44) stock price. Rayonier Advanced Materials Inc was the topic in 3 analyst reports since August 21, 2015 according to StockzIntelligence Inc. RBC Capital Markets downgraded the stock on October 30 to “Sector Perform” rating.
Rayonier Advanced Materials Inc. is primarily engaged in producing cellulose specialties. The company has a market cap of $506.69 million. The Company’s product lines include cellulose specialties and commodity products. It has 27.43 P/E ratio. Cellulose specialties are polymers, used as raw materials to manufacture consumer-oriented products, such as cigarette filters, liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints and lacquers.