UPDATE: McAdams Wright Ragen Downgrades Weyerhaeuser to Sell on Valuation
McAdams Wright Ragen lowered its rating on Weyerhaeuser (NYSE: WY) from Hold to Sell.
McAdams Wright Ragen commented, "We continue to believe fair value is somewhere in the $15–$22 range based on a net asset approach updated for the Q3 release. An earnings or cash flow based approach would point to values on the lower end of that range. If the company could sustain the most recent results it would be trading at a PE of 31x. The last time EPS excluding special items was above the dollar mark was 2007. Though in hindsight, buying the stock in the teens would have been a profitable move, we still find that price barely justified on fundamental metrics."
Weyerhaeuser closed at $27.37 on Friday.
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