WY - Weyerhaeuser wins Buy rating at DA Davidson after stock pullback

2023-04-10 11:15:26 ET

Weyerhaeuser ( NYSE: WY ) +1.2% in Monday's trading after DA Davidson upgraded the timber company to Buy from Neutral with a $35 price target, as the stock's 20% decline since early February has created an attractive entry point for investors.

"With commodity wood product prices having settled at depressed levels, we believe there's really nowhere to go but up [and] expectations have been sufficiently re-calibrated," analyst Kurt Yinger wrote, adding Weyerhaeuser's ( WY ) portfolio "offers an attractive balance of offensive and defensive characteristics that play well in what appears to be an improving, albeit still uncertain housing backdrop."

"While not quite there yet, importantly, we believe we are nearing the point where moderate commodity wood product pricing improvements can represent upside to numbers again, as opposed to requiring substantive pricing improvements to achieve estimates, as has been the case in recent months," according to Yinger.

Weyerhaeuser ( WY ) should see an earnings trough in 2023 due to weakness in the Wood Products segment, Ivo Kolchev writes in an analysis published on Seeking Alpha .

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