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Research Alert: CFRA Maintains Hold Opinion On Shares Of Weyerhaeuser Company
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Weyerhaeuser Company
Jul 27, 2025 10:06 PM

12:55 AM EDT, 07/28/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target price at $26, 32.9x our 2026 EPS estimate, a discount to WY's three-year average forward P/E of 35.4x given WY's headwinds in the Wood Products segment with stagnant growth and profitability. We decrease our EPS estimates by $0.27 to $0.43 for 2025 and by $0.14 to $0.79 for 2026. Management believes Wood Products has faced headwinds from tariffs impacting profitability despite WY's cost structure advantages. Canada's import duties increasing from 14% to 34% will likely delay some purchases, but dealers will eventually need to re-stock inventories regardless of current tariff rates. We remain concerned that China's market demand may never fully return even if tariffs are eventually lifted. WY had 70% utilization rates for EWP (high 80s for Lumber) giving us confidence that when demand returns Wood Products segment profitability will return regardless of tariffs. Near-term, we now see increased profitability headwinds in 2H 2025 even if volumes increase Y/Y.

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