Timber REIT Rayonier: Stability And Earnings Growth Despite Sluggish US Housing Market

Truist Securities analyst Michael Roxland initiated coverage on Rayonier Inc RYN at Hold with a price target of $33.
As RYN is a pure-play timber REIT, the analyst sees the absence of ancillary businesses, such as volatile wood products, as a competitive advantage for the company.
Roxland believes RYN's focus on timberland, a stable and cash-generative business, should offer earnings growth.
The analyst is also bullish on the increasing presence in the U.S. South markets, driving higher EBITDDA.
However, the analyst expects continued sluggishness U.S. housing market in the near term on higher financing costs and lower affordability, leading to lower demand for wood products and timber as a matter of concern.
Roxland projects 2024 revenues and EPS of $931 million and $0.50 (versus the consensus of $0.64), respectively.
Price Action: RYN shares are trading lower by 2.2% at $29.25 on the last check Tuesday.

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