Truist upgrades PotlatchDeltic to Buy on rising lumber prices

As previously reported, Truist upgraded PotlatchDeltic (PCH) to Buy from Hold with a price target of $52, up from $44. The firm believes the company is well-positioned to benefit from rising lumber prices given its “leverage to lumber” strategy. Truist expects lumber supply from Canada to tighten as the U.S. enacts antidumping duties and countervailing duties totaling 34.45% on most Canadian lumber producers. In addition, there is the potential for the U.S. to assess Section 232 tariffs on lumber. The firm suspects the implementation of these duties and tariffs could spur some marginal producers to close capacity, putting upward pressure on lumber pricing.