Citi opens ‘positive catalyst watches’ on Weyerhaeuser, PotlatchDeltic

Citi opened “positive catalyst watches” on both Weyerhaeuser (WY) and PotlatchDeltic (PCH) ahead of the raising of import duties on Canadian Lumber, which the firm expects by August. Both stocks sharply outperformed in Q1 in expectation of tariffs on Canadian Lumber that ultimately didn’t materialize on President Trump’s “Liberation Day,” the analyst tells investors in a research note. However, Citi points out that since the beginning of April, the stocks have meaningfully underperformed as lumber has drifted lower. The firm’s recent meetings suggest stable demand and lean inventories, which it believes creates a positive set-up for lumber ahead of the raising of import duties expected by August.