HELSINKI, Jan 2 (Reuters) - Finnish paper machine maker Valmet VALMT.HE , spun off from Metso MEO1V.HE , debuted on the Helsinki bourse at 7.20 euros on Thursday, higher than some analysts' price targets despite worries about weak demand for paper.

Analyst forecasts had ranged from 4.3 to 8 euros, with an average of 6.1 euros, according to a survey compiled by Vara Research.

Helsinki-based Inderes Equity Research estimated the company to be worth around 850 million euros ($1.2 billion), or 5.7 euros per share, and warned that demand for paper machines would remain weak for years.

Valmet, rival to Austria-based Andritz ANDR.VI and Germany's Voith VOITP.UL , is a leading world player in paper and pulp machines.

"In general, the outlook is sluggish and while the general attitude towards large capital expenditure investments is as negative as it currently is, large projects are slim to none," analysts at Inderes said in a note to clients.

The spinoff was aimed at helping Valmet and Metso focus on their different businesses. Metso, which makes mining and construction equipment, is struggling to cope with a fall in spending by mining companies. ($1 = 0.7257 euros)

(Reporting by Jussi Rosendahl; Editing by David Holmes)

((jussi.rosendahl@thomsonreuters.com)(+358 9 6805 0248)(Reuters Messaging: jussi.rosendahl.thomsonreuters.com@reuters.net))

Keywords: FINLAND VALMET/