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On Friday, DA Davidson maintained a positive outlook on Weyerhaeuser Company (NYSE:WY) with a reiterated Buy rating and a $36.00 price target. Following the market close, Weyerhaeuser, currently trading with a market cap of $22.3 billion and showing a healthy EBITDA of $1.1 billion, reported its fourth-quarter results for 2024, which surpassed both DA Davidson’s projections and the broader consensus. According to InvestingPro data, four analysts have recently revised their earnings upward for the upcoming period, with analyst targets ranging from $32 to $40. The company disclosed a Non-Timberland Segment (NCS) EBITDA of $84 million for 2024, positioning it favorably to surpass its year-end 2025 goal of $100 million. The report underscored various incremental opportunities anticipated in the upcoming year. As a prominent player in the Specialized REITs industry, Weyerhaeuser has maintained dividend payments for 54 consecutive years, currently offering a 3% yield. InvestingPro subscribers can access detailed analysis of the company’s financial health, which is currently rated as "Good," along with over 30 additional key metrics and insights.
The analysis by DA Davidson pointed out that, barring significant shifts in lumber and Oriented Strand Board (OSB) pricing, the first-quarter outlook for 2025 implies a slight advantage over their predictions. The return to profitability in Weyerhaeuser’s lumber division was anticipated but remains noteworthy. DA Davidson suggests there could be further potential for gains as the year unfolds, aligning with InvestingPro’s Fair Value assessment, which indicates the stock is currently trading near its Fair Value.
The analyst commented on the company’s performance, noting the significance of the return to profitability in the lumber sector for the current quarter and the potential for continued improvement throughout the year. The review of DA Davidson’s model for Weyerhaeuser is ongoing, and further insights are expected following the company’s conference call scheduled for the next day. As of now, the firm’s recommendation for Weyerhaeuser shares remains a Buy.
In other recent news, Weyerhaeuser Company reported its fourth quarter 2024 results, which saw its earnings surpass analyst expectations. The timber and wood products company posted adjusted earnings per share (EPS) of $0.11, outperforming the analyst consensus of $0.05 by $0.06. However, the company’s revenue for the quarter slightly missed the mark, coming in at $1.71 billion against the projected $1.72 billion by analysts. It is important to note that these are recent developments and no year-over-year comparison for revenue was provided in the company’s press release. Weyerhaeuser, one of the world’s largest private owners of timberlands, controls approximately 10.4 million acres in the U.S. and manages additional public timberlands in Canada. The company’s operations extend to manufacturing wood products and managing other business lines including product distribution, climate solutions, and real estate.
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