Goldman Sachs Reiterates Buy Rating, $25 PT on Weyerhaeuser Company

In a report published Monday, the Goldman Sachs Group reiterated its Buy rating and $25.00 price target on Weyerhaeuser Company

. Goldman Sachs noted, “We would use the weakness in WY last week (rated Buy, and is on the Americas Conviction List) to increase positions in the stock as: (1) we see upside to consensus 2Q estimates given the strong rally in wood products prices (lumber and oriented strand board), (2) expect favorable commentary from management on the US housing and wood product markets, and (3) see potential for upward revisions to consensus 2012-2014 estimates post the print. On July 20, leading N.A. lumber producer WFT.TO (c. 7% share of N.A. lumber market vs. c. 6% for WY) reported strong 2Q results – a positive read-across for WY. We see 9% upside to our 12-month $25 price target, which is based on our SOTP valuation. Risks include: (1) slower US housing recovery; (2) lower product prices (lumber and pulp); and (3) weaker earnings.” Weyerhaeuser Company closed on Friday at $23.06.