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On Monday, Citi analysts adjusted their outlook for Weyerhaeuser stock (NYSE: WY), reducing the price target to $31 from a previous $35. The analysts maintained a Buy rating for the stock, despite the revised target. According to InvestingPro data, the stock currently trades at $25.91, with analyst targets ranging from $30 to $38.
Citi analysts cited a more cautious approach to pricing assumptions for logs, lumber, and oriented strand board (OSB) in 2025. As a result, they lowered their EBITDA estimate by 7% for the year. The company’s current EBITDA stands at $1.14 billion, with a gross profit margin of 18.23%. The Sum-of-the-Parts (SOTP) assumptions for Timberlands remain unchanged, according to the analysts.
The analysts explained that the change in the price target reflects a more challenging demand environment for Wood Products. They adjusted the Next (LON:NXT) Twelve Months (NTM) EBITDA multiple for Wood Products to 5x, in line with the updated market conditions. InvestingPro analysis reveals 8 additional key insights about Weyerhaeuser’s financial health and market position, available to subscribers.
Despite the revised price target, Citi analysts continue to recommend Weyerhaeuser stock with a Buy rating. Their analysis indicates confidence in the company’s long-term prospects, even amid current market challenges.
Weyerhaeuser, a major player in the timber industry, continues to navigate market dynamics with a focus on maintaining its position in the sector.
In other recent news, Weyerhaeuser Company (NYSE:WY) has agreed to purchase approximately 117,000 acres of timberland in North Carolina and Virginia for $375 million. This acquisition is expected to enhance Weyerhaeuser’s Southern Timberlands portfolio and contribute to cash flow. In a separate development, the company has reached an agreement to sell its Princeton, British Columbia sawmill to the Gorman Group for about $86 million USD. The sale includes the manufacturing facility and associated timber licenses, with the transaction anticipated to close in the third quarter of 2025. Analysts at DA Davidson have maintained a Buy rating on Weyerhaeuser stock, with a price target of $36, expressing confidence in the company’s strategic moves. Meanwhile, Argus has maintained a Hold rating, noting challenges in the housing market affecting Weyerhaeuser’s earnings. The company’s earnings are closely tied to the new-housing market, which has faced headwinds due to high borrowing costs. Despite these challenges, Weyerhaeuser has adjusted its dividend payments, increasing its regular quarterly payout in the first quarter of 2025. These recent developments reflect Weyerhaeuser’s ongoing efforts to optimize its operations and asset base.
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