UPDATE: Citigroup Raises Target on Plum Creek Timber to $45

Citigroup reiterates its Buy rating on Plum Creek Timber (NYSE: PCL) and raises its price target to $45 from $41 as a weak guidance in EPS is mitigated by cash strength.

Citigroup says, "PCL reported a slightly-below-consensus 4Q ($0.38 vs. $0.39 cons) and soft 2012 EPS guidance ($1.00-$1.25 vs. $1.34 cons). However three factors mitigate the weak guide: 1) management may be setting a low bar after 2010-2011, when US housing starts ultimately fell short of early expectations; 2) cash guidance, which is more important than EPS in determining dividend support, beat expectations; 3) early 2012 business trends appear positive."

PCL closed at $40.08 a share on Monday.