DA Davidson Upgrades Plum Creek Timber (PCL) to Buy, Trading at 32% Below its NAV

DA Davidson upgraded shares of Plum Creek Timber (NYSE: PCL) to a Buy rating from its previous rating of Neutral and is reiterating its price target of $45.

The firm believes that shares of PCL are attractive as they have fallen roughly 14 percent since late April. In the past three months Plum Creek has reported inline earnings and has purchased 50,000 acres in Georgia for $75 million.

At a price of $38.04 per share, the firm notes that the company is trading at 32 percent below its NAV. DA Davidson's rule is that Timber REIT shares are buys when their discount exceeds 30 percent.

The company has a sufficient amount of cash to pay out its dividend for another year, and the firm comments that they are anticipating that they will increase it when the housing market returns.

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 $38.04 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Cisco rating cut at HSBC as analyst sees a lack of catalysts
• Hydrofarm Holdings Group, Inc. (HYFM) Misses Q2 EPS by 134c