UPDATE: KBW Initiates Weyerhaeuser at Outperform

KBW is out with its report today on Weyerhaeuser (NYSE: WY), initiating WY at Outperform.

In a note to clients, KBW writes, "We are initiating coverage of Weyerhaeuser with an Outperform rating. As one of the few remaining fully integrated forest products companies, Weyerhaeuser's earnings are highly leveraged to U.S. housing demand. While persistent weakness in the residential construction market may limit near-term share appreciation, we view the stock's current valuation as an attractive entry point to participate in significant earnings growth over the next 1-3 years."

KBW has a $24 PT on WY.

Shares of WY closed Monday at $20.34, up 0.05% from Friday's close.