UPDATE: D.A. Davidson Upgrades Potlatch Ahead of Possible Dividend Hike

In a report published Thursday, D.A. Davidson & Co. analyst Steven Chercover upgraded the rating on Potlatch Corporation PCH from Neutral to Buy, and reiterated the $46.00 price target. In the report, D.A. Davidson & Co. noted, “Potlatch is the only Timber REIT to not raise its dividend in 2013, and we think that will soon change. The company has no significant near-term debt maturities, and has out-earned its dividend distribution by 32% on an FAD basis in the last twelve months. Given where we are in the early stages of a housing recovery, and where we expect Potlatch's cash to end up by the end of FY 2013, we suspect Potlatch will raise its dividend toward the average of its larger peers – best guess a 10% ($1.24 to $1.36) hike.” Potlatch Corporation closed on Wednesday at $38.17.
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Posted In: Analyst ColorUpgradesAnalyst RatingsD.A. Davidson & Co.Steven Chercover
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