The Globe and Mail reports in its Friday, April 17, edition that RBC Dominion Securities analyst Matthew McKellar has lowered his recommendation for Canfor to "sector perform" from "outperform." The Globe's David Leeder writes in the Eye On Equities column that Mr. McKellar continues to target the shares at $15. Analysts on average target the shares at $15.66. Mr. McKellar says in a note: "The company's geographic diversification into the U.S. South and Europe should benefit its lumber segment, as B.C. faces a supply and demand imbalance; we anticipate B.C. to remain a very difficult operating area for the foreseeable future, although the company has rationalized its less-competitive facilities in the province. We think housing fundamentals over the long term remain favourable, which should be beneficial for Canfor. We think the pulp business is well positioned to supply Chinese demand for softwood pulp given its mills in Western Canada, although we expect B.C. to be a tricky operating environment for some time. We think there could be a relative scarcity of softwood pulp compared to hardwood pulp, although some ability to substitute between the two products will likely limit the spread in pricing to some degree."