Weyerhaeuser up; BMO upgrades to 'outperform' on lift from potential tariffs

McEwen

06/12/2024 14:15

** BMO Capital Markets upgrades U.S. forest products firm
Weyerhaeuser  WY.N  to "outperform" from "market perform"
    ** WY shares up ~1% at $31.26 premarket
    ** Brokerage says higher export duties on lumber coming from
Canada will push prices higher and will benefit producers
including WY with a greater mix of production in the U.S.
    ** "Lumber capacity cuts in 2024, further log supply
pressures in both British Columbia and Quebec, and limited room
for European lumber producers to dramatically ramp-up exports to
the U.S. should all help improve North American supply/demand
balance and aid prices" - BMO 
    ** Expects "modest" improvement in new residential
construction and repair & remodeling (R&R) recovery to be 2H25
weighted
    ** 7 of 12 brokerages rate the stock "buy" or higher, 5
"hold"; their median PT is $38 - data compiled by LSEG
    ** As of last close, stock down 11% YTD

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))