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In a report published Friday, Goldman Sachs Group downgraded its rating on Weyerhaeuser (NYSE: WY) from Conviction List Buy to Neutral, and reiterated its $27.00 price target.

Goldman Sachs noted, “We downgrade WY to Neutral (from CL-Buy) as we see less upside (6%) to our 12-month price target for WY vs. our Buy-rated names – RKT, UFS, BZ (22%, on average) – within our Paper & Forest Products coverage. While we continue to believe that US housing is in a nascent stage of recovery and expect housing starts to be improve by an 18% CAGR through 2014, we are more cautious on the near term-trading environment for WY given that the shares are up 37% YTD (vs. S&P 500 14%) and wood product prices have historically softened in 4Q along with seasonally slower home building activity (key end-market) during the winter months. We would get more constructive on the shares if US housing recovers at a faster pace than we currently forecast, and/or the stock pulled back to more compelling valuation levels.”

Weyerhaeuser closed on Thursday at $25.50.

Latest Ratings for WY

Sep 2014JP MorganInitiates Coverage onNeutral
Sep 2014BMO CapitalInitiates Coverage onOutperform
Sep 2014BMO CapitalInitiates Coverage onOutperform

View More Analyst Ratings for WY
View the Latest Analyst Ratings

Posted-In: Goldman Sachs GroupAnalyst Color Downgrades Analyst Ratings


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