Deutsche Bank Downgrades Weyerhaeuser (WY) to Hold

April 28, 2009 8:15 AM EDT

Deutsche Bank downgrades Weyerhaeuser (NYSE: WY) from Buy to Hold. Price target increased from $30 to $38.

Deutsche analyst says, "We are boosting our price target from $30 to $38. However, after a sharp
rise over the last several weeks, the stock appears fairly valued to us, even relative to the new, higher price target. Hence, we are lowering our rating from Buy to Hold. In addition to fair valuation, our Hold rating balances the likelihood of near-term challenges against the prospect of eventual cyclical recovery in the longer term.

"Our previous $30 price target was by reference to timber REIT stocks trading at about $25. Now that the timber REITs are well above $30, we estimate WY by comparison should be worth about $40. To arrive at our $38 target, we are applying a 5% discount to account for greater likelihood that REIT conversion will not happen within the next year."

To see more analyst ratings on WY Click Here.

Weyerhaeuser Company is a forest products company that primarily grows and harvests trees, builds homes and makes a range of forest products.

Related Categories

Downgrades

Stocks Mentioned

Related Entities

• Deutsche Bank

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?