Goldman Sachs analyst Susan Maklari maintained a Buy rating on Weyerhaeuser today and set a price target of $37.00.
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Susan Maklari’s rating is based on several key factors that highlight Weyerhaeuser’s strong operational model and potential for future growth. Despite current challenges, the company’s efforts in cost reduction over recent years have enhanced its operational and financial flexibility, allowing it to invest in growth opportunities and increase shareholder returns. The anticipated improvement in profitability, driven by industry curtailments and expected increases in Canadian lumber duties, suggests a positive outlook for the company.
Additionally, Weyerhaeuser’s extensive portfolio of timberlands is valued at $33 per share, with potential upside from new initiatives. The company’s solid balance sheet, with an estimated net debt to mid-cycle EBITDA of approximately 2.2x, further supports its financial stability. With the stock down by 6% year-to-date, the risk/reward profile appears favorable, justifying the Buy rating.
In another report released today, D.A. Davidson also maintained a Buy rating on the stock with a $35.00 price target.