Why is Sylvamo Corporation (SLVM) One of the Best Cheap Small Cap Stocks to Invest in Now?

Sylvamo Corporation (NYSE:SLVM) is one of the best cheap small cap stocks to invest in now. Bank of America Securities analyst George Staphos reiterated a Buy rating on Sylvamo Corporation (NYSE:SLVM) on December 2 and set a $59 price target.

In a separate development, Sylvamo Corporation (NYSE:SLVM) announced on November 10 that its board of directors unanimously adopted a limited-duration shareowner rights plan for the protection of the interests and maximization of value for all shareowners, effective immediately. The rights plan was adopted after Atlas Holdings directed its two affiliated directors to resign, resulting in the termination of the 2023 cooperation agreement between Atlas and Sylvamo. Resultantly, after November 13, Atlas would not be subject to standstill restrictions under the cooperation agreement.

Sylvamo Corporation (NYSE:SLVM) reported that the rights plan is specially designed “to allow Sylvamo shareowners to realize the long-term value of their investment”, and it “reduces the likelihood that any person or group could gain control of the company through open market or private accumulation of Sylvamo shares without appropriately compensating shareowners for such control or providing the board sufficient time to make informed decisions”.

Applicable equally to all future and current shareholders, management reported that the rights plan was not adopted in response to particular proposals pertaining to the acquisition of partial or full control of the company, and is not intended to “deter or preclude the board from considering offers that are in the best interests of all shareowners.”

Sylvamo Corporation (NYSE:SLVM) is a paper company that manufactures uncoated freesheet for paper products, such as cut size and offset paper, and also markets coated unbleached kraft papers, pulp, and aseptic and liquid packaging board. Its operations are divided into the following geographical segments: Europe, Latin America, and North America.

While we acknowledge the potential of SLVM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.