RYAM Stock Forecast & Price Target

Rayonier Advanced Materials Inc. anticipates mid-single-digit percentage increases in average sales prices year-over-year, coupled with rising demand for ethers driven by restocking and growth in key end markets, such as food and pharmaceuticals. The company's management has successfully negotiated price increases without sacrificing market share, which positions it favorably against rising raw material and logistics costs. Furthermore, the outlook for adjusted EBITDA remains solid, with increased free cash flow projections and expectations for stronger earnings in the second half of 2025, contingent on improved market conditions.

Rayonier Advanced Materials Inc faces a negative outlook primarily due to anticipated EBITDA losses within its High Purity Cellulose segment, stemming from declining prices that are expected to persist in the coming quarters. Additionally, the company's projections indicate a year-over-year decline in total segment volumes, exacerbated by new competitive supply expected to enter the market in 2025. Moreover, financial metrics reveal unsatisfactory performance in the High-Yield Pulp segment, with actual sales and EBITDA figures falling significantly short of forecasts, contributing to an estimated $10 million negative impact on 2024 earnings.