Goldman Sachs Raises Its PT On Weyerhaeuser To $25 Following Earnings

Goldman Sachs maintains its 2011-2012 EPS estimates on Weyerhaeuser WY of $0.75 and $1.35, respectively, and introduces a 2013 EPS estimate of $1.55. It expect WY's earnings will continue to show gradual recovery over the next several years as it expects pulp prices to remain strong and US housing activity continues to recover off trough levels, which it anticipates will drive higher earnings for WY's Wood Products and Real Estate segments. Goldman rates WY shares Neutral within our Neutral Paper and Forest Products coverage. With WY shares trading in line on a five-year forward price to normalized earnings and at a 19% discount to our sum-of-the-parts valuation estimate, Goldman believes valuation largely reflects a gradual recovery to normalized earnings. Risks to the target price include a weaker recovery in US housing starts and wood products prices and higher pulp prices than anticipated. Goldman Sachs has a Neutral rating and $25 PT on WY