Upgraded Product Line from Neenah Paper - Analyst Blog


Neenah Paper, Inc. ( NP ), a global manufacturer of technical products and fine papers, recently relaunched its Environment Papers premium recycled papers line with new natural colors and a uniquely tactile finish. With this, Neenah Paper's product portfolio will conform to evolving market standards and make it a perfect fit for sustainable communication programs, luxury packaging and all digital print applications.

The upgraded product line is based on feedback from extensive market research and customer insights. The improvised Environment Papers includes seven new natural colors with descriptive names like Grocer Kraft, Honeycomb, Weathered and Concrete. The products, manufactured under sustainable practices, also offer matching envelopes in 19 styles. In addition to the proprietary RAW finish, the new product line provides a consistently superior printability.

With such improvisations, Neenah Paper is likely to see healthy growth in the forthcoming quarters. Neenah Paper also witnessed strong revenue and earnings growth in the fourth quarter of 2013, recording a 30% year-over-year increase in adjusted earnings on a per share basis. Revenues increased on the back of consistently strong growth in the company's Technical Products and Fine Paper segments despite headwinds like rising material costs.

Operational synergies from the acquired Southworth brands helped Neenah Paper to succeed in its go-to-market strategy as well as drive higher-value price and mix. Despite higher pulp prices, the company's manufacturing efficiencies and improved productivity have ensured sustainable margin expansion. While focusing on its core areas of expertise, Neenah Paper is also striving to diversify its product portfolio in order to drive further growth.

Neenah Paper looks well positioned to capitalize on opportunities in growing markets through both organic and inorganic means. With a strong balance sheet, healthy cash flow and effective management, the company appears poised to exploit value-added opportunities to bolster its prospects.

Neenah Paper currently has a Zacks Rank #2 (Buy). Other stocks that look promising in the industry and are worth looking into now include Resolute Forest Products Inc. ( RFP ), carrying a Zacks Rank #1 (Strong Buy), and Fibria Celulose SA ( FBR ) and Clearwater Paper Corp. ( CLW ), both carrying a Zacks Rank #2 (Buy).

CLEARWATER PAPR (CLW): Free Stock Analysis Report

FIBRIA CELULOSE (FBR): Free Stock Analysis Report

NEENAH PAPER (NP): Free Stock Analysis Report

RESOLUTE FOREST (RFP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CLW , FBR , NP , RFP



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