Analysts at RBC Capital Markets and TD Securities lowered their price targets on Interfor Corp. (IFP.TO) after the Burnaby, BC-based forest products company completed a bought deal offering of approximately $144 Million at $10.05 per share.

RBC analyst Matthew McKellar reduced his target on the stock to $17 from $19, and maintained an Outperform rating.

"We believe the recent equity issuance has put Interfor on more solid footing to navigate challenging near-term conditions in the lumber market," McKellar said in a note to clients.

"While there is little indication of a meaningful demand-side inflection, we think the additional tariff pressure on Canadian lumber producers (who would largely be operating deeply below EBITDA breakeven today) along with an added degree of clarity from the announcement could potentially accelerate Canadian supply curtailments, supporting improved market tension and pricing into 2026," the analyst said.

TD analyst Sean Steuart lowered his target to $12 from $15, and maintained a Hold rating.

"We did not expect that IFP would require an equity raise to provide balance sheet security, but the $143.8 Million offering, while dilutive to existing shareholders, addresses questions around covenants and liquidity," Steuart said in a note to clients.

"Our lower target price reflects dilution tied to the equity offering, lower volume estimates (H2/25 downtime guidance), and more conservative price realization spread forecasts."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)