UPDATE: Citigroup Upgrades Weyerhaeuser to Buy on Favorable Outlook

In a recent note, Citigroup raised its rating on Weyerhaeuser

from Neutral to Buy and increased its price target on shares from $22.50 to $28. Citigroup commented, "We are upgrading WY to Buy and making it our most preferred name. Our upgrade is based on our view that: 1) 2H lumber prices will be stronger-than-expected as dealers have not built adequate inventories to meet housing construction demand; 2) WY is most likely to see upwards earnings revisions in a sector where estimates are generally drifting lower; 3) WY is positioned for long-term dividend growth given a multi-year US housing recovery." Weyerhaeuser closed at $22.29 on Friday.