Street Calls of the Week
Investing.com - RBC Capital lowered its price target on West Fraser Timber Co. Ltd. (NYSE:WFG) to $91.00 from $92.00 on Friday, while maintaining an Outperform rating on the stock. The company, currently trading at $65.75 and near its 52-week low, appears undervalued according to InvestingPro’s Fair Value analysis.
The firm cited West Fraser’s low-cost focus, advantaged softwood lumber duty rate, geographical diversification, and strong balance sheet as factors that position the company to withstand various scenarios in wood products markets through the remainder of 2025 and into 2026. InvestingPro data confirms this financial strength, showing the company holds more cash than debt and maintains a healthy current ratio of 2.89.
RBC Capital believes West Fraser is well positioned to potentially acquire high-quality assets that might become available if trough conditions persist in the market.
The investment bank reiterated its Outperform rating on West Fraser Timber despite the slight reduction in price target.
The timber company continues to demonstrate resilience in challenging market conditions, according to RBC Capital’s assessment of its fundamental strengths.
In other recent news, West Fraser Timber Co. Ltd . reported its third-quarter 2025 earnings, which fell short of market expectations. The company announced an earnings per share (EPS) of -$2.63, significantly missing the forecasted -$1.18. This represented a negative surprise of 122.88%. Additionally, West Fraser Timber’s revenue came in at $1.31 billion, which was below the anticipated $1.39 billion, marking a shortfall of 5.76%. These earnings and revenue results have been a focal point for investors. The company’s financial performance in this quarter has drawn attention due to the substantial deviation from analysts’ estimates. These developments are part of the recent updates concerning West Fraser Timber.
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