Alert: Negative Investment/Fundamental Signals (8/5/24)-Mercer International Inc (NASDAQ: MERC)

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Recent notable negative changes in fundamentals have affected Mercer International Inc (NASDAQ: MERC). Negative developments: the stock’s power rating fell below 50, significant quarterly sales deceleration occurred, the consensus estimate for December, 2024 decreased significantly, and the consensus estimate for December, 2025 decreased significantly. Positive development: significant quarterly earnings acceleration occurred.

Important negative changes in Mercer International Inc (NASDAQ: MERC) investment behavior have recently occurred: negative upside/downside volume developed.

In light of these highly negative signals we are reviewing our current Overall Rating of C. We would view the shares with caution pending completion of this review in the next several days.

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Current PriceTarget Research Rating

MERC is expected to be Value Creation neutral reflecting capital returns that are forecasted to be in line with the cost of capital.

Mercer International has a current Value Trend Rating of C (Neutral). The Value Trend Rating reflects contradictory signals from PTR’s two proprietary measures of a stock’s attractiveness. Mercer International has a good Appreciation Score of 73 but a slightly negative Power Rating of 31, with the Neutral Value Trend Rating the result.

Recent Price Action

Mercer International Inc (NASDAQ: MERC) stock declined by -3.1% on 8/5/24. The shares closed at $6.48. Moreover, this decline was accompanied by unusually high trading volume at 156% of normal. The stock has been weak relative to the market over the last nine months and has declined -18.2% during the last week.

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