Potlatch stock rating reiterated at Buy by DA Davidson amid merger news

Investing.com - DA Davidson maintained its Buy rating and $54.00 price target on Potlatch (NASDAQ:PCH) following the company’s merger announcement with Rayonier. According to InvestingPro data, analyst price targets for PCH range from $45 to $55, with the company currently commanding a market capitalization of $3.17 billion.

PotlatchDeltic and Rayonier revealed Wednesday they had entered into a definitive agreement to combine in an all-stock merger of equals, bringing together the second and third largest Timber REITs. PCH brings a strong dividend history to the merger, having maintained dividend payments for 55 consecutive years, with a current yield of 4.39%.

The transaction will create a more scaled and diversified combined entity, according to DA Davidson analyst Kurt Yinger, who views the deal positively for Potlatch despite market reaction.

Yinger noted that shareholders stand to benefit from outlined synergies, increased scale, and greater capital market relevance resulting from the merger.

The analyst also highlighted that the combined company’s more flexible leverage profile would support an eventual narrowing of the net asset value discount.

In other recent news, PotlatchDeltic Corp reported its second-quarter 2025 earnings, noting a decrease in total adjusted EBITDA to $52 million from $63 million in the previous quarter. Despite the challenges faced in the Wood Products segment, the company expressed optimism about a significant boost in its third-quarter EBITDA. Analysts and investors are closely watching these developments, as the company’s future guidance has sparked positive sentiment. While the stock rose in aftermarket trading, the focus remains on the anticipated improvements in PotlatchDeltic’s financial performance. The company’s outlook and strategic adjustments continue to be key areas of interest for stakeholders. These recent developments highlight the importance of earnings and revenue information for investors. PotlatchDeltic’s management remains focused on navigating the current market conditions.

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