Weyerhaeuser stock holds Buy rating at DA Davidson despite headwinds

Investing.com - DA Davidson has reiterated its Buy rating and $35.00 price target on Weyerhaeuser (NYSE:WY) following the timber company’s second-quarter 2025 financial results. According to InvestingPro data, analyst targets range from $30 to $38, with 9 analysts recently revising their earnings expectations downward for the upcoming period.

The timber and forest products company reported slightly better-than-expected results for the quarter, prompting a positive market reaction with shares trading higher after the announcement. The company, a prominent player in the Specialized REITs industry, maintains a solid dividend track record spanning 55 consecutive years, with a current yield of 3.17%.

Despite the favorable quarterly performance, DA Davidson has adjusted its estimates downward, recalibrating Wood Product pricing and margin assumptions in its financial models for the company.

The research firm noted that Weyerhaeuser faces ongoing challenges, including diminishing contributions from its oriented strand board (OSB) and engineered wood products (EWP) businesses, along with more limited near-term share repurchase potential.

DA Davidson maintained its positive outlook on the stock, citing a compelling risk/reward profile with Weyerhaeuser trading at more than 30% discount to its net asset value (NAV) and expectations that lumber fundamentals are positioned to improve.

In other recent news, Weyerhaeuser Company disclosed its second-quarter earnings for 2025, which showed a small miss on earnings per share (EPS). The company reported an EPS of $0.12, slightly below the anticipated $0.13, marking a 7.69% negative surprise. However, the company experienced a positive market reaction due to revenue figures that exceeded expectations. Weyerhaeuser achieved a revenue of $1.9 billion, surpassing the forecast by $10 million. Despite the EPS miss, the stronger-than-expected revenue contributed to a favorable outlook among investors. These developments highlight the company’s ability to generate higher-than-expected sales during this period. The earnings release is part of the latest updates for investors monitoring Weyerhaeuser’s financial performance.

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