UPDATE: D.A. Davidson Reiterates Neutral Rating, Raises PT on Weyerhaeuser Company
In a report published Monday, D.A. Davidson & Co. reiterated its Neutral rating on Weyerhaeuser Company (NYSE: WY), and raised its price target from $27.00 to $30.00.
D.A. Davidson noted, “Sometimes seasonality doesn't kick in as expected, and this was certainly the case in Q4-12. We'd attribute the cause in this case not to global warming, but to the warming of the real estate market. The lack of seasonality was particularly evident in wood products, where as opposed to the normal demand and prices cooling off as the holidays approached, prices for lumber and panels surged and end users attempted to obtain inventory with increased urgency. The two key commodities, softwood lumber and oriented strand board rose $35/mbf and $20/msf to Q4 averages of $335 and $332, respectively, and both are now not only $100 above end of September levels, but in record territory for January in the case of OSB. Needless to say, we are raising estimates.”
Weyerhaeuser Company closed on Friday at $30.65.
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