Analyst Hong Zhang from J.P. Morgan maintained a Buy rating on Weyerhaeuser (WY – Research Report) and decreased the price target to $30.00 from $32.00.
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Hong Zhang has given his Buy rating due to a combination of factors related to Weyerhaeuser’s strategic positioning and future growth potential. Despite recent revisions in earnings estimates due to weaker lumber and OSB sales realizations, Zhang views these adjustments as a reflection of current market conditions rather than a long-term trend. The company remains a significant player in the timber REIT sector, with strong leverage to new home construction and renovation activities, which are expected to stabilize and improve over time.
Furthermore, Weyerhaeuser stands to benefit from potential tariffs on Canadian wood products, which could enhance pricing and margins in its wood products segment. Additionally, the company’s investments in solar and carbon capture and storage (CCS) leases within its Natural Climate Solutions (NCS) segment present promising opportunities for long-term earnings growth and valuation upside. These factors collectively underpin Zhang’s optimistic outlook and the Buy rating for Weyerhaeuser’s stock.
According to TipRanks, Zhang is a 2-star analyst with an average return of 0.2% and a 50.00% success rate.
In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a $38.00 price target.