UBS Maintains a 'Sell' on Potlatch (PCH); Adjusting Estimates/Target for Harvest Cut

UBS maintains a 'Sell' on Potlatch (NASDAQ: PCH) price target lowered from $30 to $28.

UBS analyst says, "Lower harvests drag on results: Yesterday PCH announced it was cutting its dividend by 40%. It also announced it was reducing 2012 harvests by about 700,000 tons (~15%) compared to our forecast. We assume harvests will gradually recover over the next few years. However, it will take time to reach PCH’s long-term harvest goal of 4.6 mm tons (30% improvement over planned 2012 harvests)."

"Reflecting the lower harvest forecast (mainly in Southern sawlogs due to the loss of 100kt/quarter from GP’s idled Crosset mill), our new 2012 est is $0.70 (was $1.25). Our forecast for land sale income has not changed at $24mm-this compares to estimated $34mm in 2011. Our new 2013 EPS estimate is $1.10 (was $1.55)."

For an analyst ratings summary and ratings history on Potlatch click here. For more ratings news on Potlatch click here.

Shares of Potlatch closed at $30.58 yesterday.

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