Opinions Colin Stewart
Cascades IncCAS.TOTOP PICKApr 24, 2018
Colin StewartStock price when the opinion was issued
As of Jun 10, 2026. Market Open.
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Huge new facility is coming onstream, and fundamentals in containerboard are more solid than in the very competitive tissue market. Facility over budget, so will take a while to get a return. Focused on debt reduction.
Michael Sprung
Likes it, though shares have been down the past year. They fixed their operational issues. Demand remains strong in container board, and they opened a facility in Virginia which could raise margins. They sold their European division, so are more streamlined in operations. Pays around a 4% dividend. Still likes it.
Michael SprungThey've been hit by a lot of input costs, which may be easing now. It's hard to raise prices on tissue paper and costs have been rising on recycled fibre. Their new container board factory will operate soon. CAS is selling at the low end of its range historically. But be patient until the stock price doubles or even triples.
(Analysts’ price target is $9.83)
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Robert McWhirter
He is particularly interested in their containerboard business, which is the main input into boxes (for example the kind of boxes used by Amazon). They are benefitting strongly from the growth in e-commerce. Limited new supply of containerboard. The industry is operating at 97% of capacity. Many price increases are going through. They use a lot of recycled fiber for inputs to containerboard and other paper and recycled fiber is going down in price while containerboard is going up in price. (Analysts’ price target is 18.25$)