In a report released on March 28, George Staphos from Bank of America Securities maintained a Buy rating on Weyerhaeuser (WY – Research Report), with a price target of $35.00.
George Staphos has given his Buy rating due to a combination of factors that suggest potential upside for Weyerhaeuser’s stock. Despite a projected decrease in Wood Products EBITDA, the company anticipates higher Timberlands EBITDA, which is expected to offset some of the decline. Additionally, the current quarter’s lumber sales realizations are trending higher than the previous quarter’s average, contributing positively to the company’s EBITDA.
Furthermore, Weyerhaeuser is seen as a defensive play in anticipation of a rebound in the housing market, which could serve as a catalyst for better lumber pricing. While the company faces challenges such as higher costs and lower volumes, these factors were not entirely unexpected, and the stock’s current price presents an attractive opportunity relative to the price objective set by the analyst.
According to TipRanks, Staphos is a 4-star analyst with an average return of 4.7% and a 50.56% success rate. Staphos covers the Consumer Cyclical sector, focusing on stocks such as Sealed Air, Packaging, and Graphic Packaging.