UPDATE: D.A. Davidson Downgrades Plum Creek Timber Company to Neutral, Reiterates $45 PT

In a report published Monday, D.A. Davidson & Co. downgraded its rating on Plum Creek Timber Company PCL from Buy to Neutral, and reiterated its $45.00 price target. D.A. Davidson noted, “Plum Creek shares have been on a strong upward trajectory; appreciating 22% since the start of the year with 2.3% coming from dividends. The shares now stand within striking distance of our $45 target. We attribute the performance to improving residential construction statistics which are driving demand for the company's building materials and timber, and to a lesser extent to its HBU properties. However, while we expect real estate to continue to improve into 2013, we believe these expectations are already discounted into Plum Creek's valuation, and absent acceleration beyond the current consensus of 900,000 units, we lack a catalyst to increase our target from its current $45 level. Accordingly, we are downgrading Plum Creek shares from Buy to NEUTRAL.” Plum Creek Timber Company closed on Friday at $43.84.