Funds News

Marcato's McGuire bets Rayonier Advanced Materials stock will jump

NEW YORK, April 17 (Reuters) - Hedge fund manager Mick McGuire said on Tuesday that Rayonier Advanced Materials Inc’s stock price could triple if the company focuses on integrating a recent acquisition and cutting costs.

McGuire’s Marcato Capital Management has owned the stock for some time, but he spoke about it publicly for the first time on Tuesday at the 13D Monitor’s 2018 Active-Passive Investor Summit.

Rayonier Advanced Materials, a chemical company which focuses on cellulose-based products, recently made a “very accretive acquisition” and there are plenty of what McGuire calls “self-help” actions to help boost the share price. Rayonier Advanced Materials finalized its acquisition of Tembec late last year.

McGuire said Rayonier’s stock price could rise to somewhere between $34 to $60 a share from its current level of $21.82 in roughly three years. (Reporting by Svea Herbst-Bayliss; editing by Jonathan Oatis)