DA Davidson Downgrades Weyerhaeuser (WY) to Underperform; Modest Upside to Q4; Shares Overshoot Target
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Price: $24.56 -1.05%
Rating Summary:
13 Buy, 8 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 8 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson downgraded Weyerhaeuser (NYSE: WY) to Underperform. PT $22 (5-yr/Long-term PT $27)
DA analyst says, "With 2010 now behind us and Weyerhaeuser’s conversion from C-Corp to REIT status complete, it’s too bad the housing downturn has weighed so heavily on results of late. We believe the turning of the calendar page has made the change in WY’s corporate structure official to REIT investors, which likely explains its stock’s strong outperformance against its Timber REIT peers in the past month. Unfortunately, like those peers (with the possible exception of Rayonier (NYSE: RYN)(BUY), Weyerhaeuser truly needs a housing recovery before its Timber, Wood Products, and Real Estate segments can thrive. With WY shares now more than $2 above our $22 target (unchanged), and its dividend yield now below 2.5%, we are downgrading the stock."
"Our estimate for fiscal 2011 goes up very slightly from earnings of $0.58 to $0.61, more as a function of calibration of the model than any significant change to the operating segments. Our 2012 estimate is down by four cents to $1.03."
For more ratings news on Weyerhaeuser click here and for the rating history of Weyerhaeuser click here.
Shares of Weyerhaeuser closed at $22.62 yesterday.
DA analyst says, "With 2010 now behind us and Weyerhaeuser’s conversion from C-Corp to REIT status complete, it’s too bad the housing downturn has weighed so heavily on results of late. We believe the turning of the calendar page has made the change in WY’s corporate structure official to REIT investors, which likely explains its stock’s strong outperformance against its Timber REIT peers in the past month. Unfortunately, like those peers (with the possible exception of Rayonier (NYSE: RYN)(BUY), Weyerhaeuser truly needs a housing recovery before its Timber, Wood Products, and Real Estate segments can thrive. With WY shares now more than $2 above our $22 target (unchanged), and its dividend yield now below 2.5%, we are downgrading the stock."
"Our estimate for fiscal 2011 goes up very slightly from earnings of $0.58 to $0.61, more as a function of calibration of the model than any significant change to the operating segments. Our 2012 estimate is down by four cents to $1.03."
For more ratings news on Weyerhaeuser click here and for the rating history of Weyerhaeuser click here.
Shares of Weyerhaeuser closed at $22.62 yesterday.
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