UBS Maintains a 'Sell' on Plum Creek Timber (PCL); Remained Concerned

UBS maintains a 'Sell' on Plum Creek Timber (NYSE: PCL), PT lowered from $37 to $36.

UBS analyst said, "We remain cautious on Plum Creek shares. We question the sustainability of export demand and worry about a margin squeeze for West Coast sawmills. We believe the markets need a significant pickup in domestic, not export, demand. This could take time."

"The company is guiding to 2Q EPS of $0.25-0.30. Current consensus is $0.31. Our new estimate is $0.26 (was $0.28). They have maintained full-year guidance of $1.25-1.45. Our forecast remains at the low end, $1.25. We assume Western log prices moderate in the second half of the year."

For more ratings news on Plum Creek Timber click here and for the rating history of Plum Creek Timber click here.

Shares of Plum Creek Timber closed at $42.89 yesterday.

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