The Globe and Mail reports in its Tuesday, Jan. 23, edition that Scotia Capital analyst Ben Isaacson rates Canfor "sector perform" in new coverage, with a $22 share target. The Globe's David Leeder writes that analysts on average target the shares at $23.50. Mr. Isaacson says in a note: "Canfor offers investors exposure to a diversified lumber portfolio, with operational assets in Canada, the United States and Europe. This is not the Canfor of yesterday, in which more than 80 per cent of its lumber capacity was based in British Columbia. Today, nearly 70 per cent of Canfor's lumber capacity is based outside of the province, while the company boasts a balance sheet flush with deployable cash. This comes at an interesting time for Canfor, given where cycle-trough Paper & Forest Products valuations are hovering. While the valuation of the stock is compelling at 3.1 times/3.5 times Scotia/Street '25 EBITDA, what keeps us at 'sector perform' are: (1) one of the lowest free cash flow conversion rates among its peers; (2) significant exposure to the pulp markets via Canfor Pulp; (3) generally weaker through-cycle margins than its peers; and (4) a low probability of excess capital returned to shareholders in '24."