DA Davidson Downgrades Weyerhaeuser (WY) to Neutral; One Step Forward, One Step Back

DA Davidson downgraded Weyerhaeuser (NYSE: WY) from Buy to Neutral with a price target of $22.00.

DA analyst said, "The optimism that 2012 is “the year” does not appear to be shared by any of the four timber REITs nor the other housing plays in our coverage universe. With the sense that reality will not match expectations, we believe the upside in Weyerhaeuser shares is limited from here – and with the company’s shares now within 3% of our $22 target, we are downgrading the stock."

"There is no question that Weyerhaeuser, of all the timber REITs, has the greatest leverage to a housing recovery, but at this juncture the reason to own the REITs is for dividends (WY yields 2.8%) and safety of principal, not earnings momentum." (Davidson cuts FY12 EPS estimate from $0.59 to $0.39)

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

Shares of Weyerhaeuser closed at $21.30 yesterday.

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