* Sees EBITDA C$47-C$53 mln vs EBITDA loss $42 mln last yr
* Liquidity of C$250 mln vs C$138 mln last qtr
* Dundee upgrades stock by a notch
* Shares rise as much as 26 percent (Adds details, analyst comments, updates share movement)
June 18 (Reuters) - Canadian forestry company Tembec Inc (TMB.TO) said it expects liquidity in the third quarter to nearly double sequentially, following the recent sale of two pulp mills, sending its shares up as much as 26 percent.
Tembec, which operates in North America and France, said it will also talk with certain investors in a bid to boost liquidity. However, the company did not provide any details on the nature of discussions.
For the third quarter ending in June 30, the company expects liquidity to rise to C$250 million from C$138 million in the second quarter.
Dundee Capital Markets upgraded the stock to "neutral" from "sell," but said the stock has some downside over the next few months as the market pulp rally is starting to slow down.
"We recommend coming back in after another 5 percent to 10 percent correction over the next few months," analyst Richard Kelertas said.
The company also forecast third-quarter earnings before income tax, depreciation and amortization of C$47 million to C$53 million, compared with a loss before income tax, depreciation and amortization of C$42 million last year.
Though there has been a rise in pulp production in North America, the end-markets are still only moderately improving with paper and board prices not really keeping up with surging pulp prices, the analyst said.
Tembec shares were up 17 percent at C$2.06 in afternoon trade on the Toronto Stock Exchange. They touched a high of C$2.20 earlier in the session. (Reporting by Aftab Ahmed in Bangalore; Editing by Gopakumar Warrier) (email@example.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: firstname.lastname@example.org))