Mr. Kelertas isn’t the only Canadian analyst that has come to Sino-Forest defence this week. RBC Capital Markets analyst Paul Quinn also came out in favour of the company, maintaining an Outperform rating on the stock, though noting an above average risk in owning shares.
In a note, Mr. Quinn said Sino-Forest provided a “strong response” in releasing documents that attempted to disprove allegations made by Muddy Waters. But while Mr. Quinn said the data was a good first step, he also acknowledged that the company’s stock would remain volatile for a while yet. “We don’t expect a meaningful recovery to pre-Muddy Waters share price levels until after the report by Sino’s Independent Committee and the analyst tour in July,” he said