UPDATE: Bank of America Raises PT on Rayonier on Increasing FCF

In a report published Friday, Bank of America analyst Michael A. Roxland reiterated his Buy rating on Rayonier

, and raised his price target from $61.00 to $63.00. In the report, Roxland noted, “We recently had the chance to check in with our industry sources in and around Rayonier, and host management at a number of investor sessions. From our research, we came away confident in RYN's ability to generate increasing cash flow from Performance Fibers post C-mill conversion. Better log demand and pricing in the Pacific Northwest as well as increased interest in land should ultimately result in better EBITDA from Forest Resources and Real Estate. Our PO moves to $63 from $61 as we take our valuation multiples up (RYN's C-mill conversion should drive a higher valuation multiple) and lower our target dividend yield. We would continue to add to positions in RYN.” Rayonier closed on Thursday at $57.80.