Brokerage cuts PTs on Canadian lumber firms, but says markets have settled

Western Forest Products

14/09/2021 16:39

** TD Securities cuts PTs of Canadian lumber companies
Canfor Corp  CFP.TO , Interfor Corp  IFP.TO  and Western Forest
Products  WEF.TO  and says wood product commodity markets are
heading towards balanced levels after Q2 peak 
    ** Brokerage says after an unprecedented 18-month boom in
prices, North American lumber and panel markets have settled in
recent weeks
     ** Lumber futures touched a record high of $1,711 per
thousand board feet in May, but are now trading at around $500
per thousand board feet
    ** Price crash from May through August was more severe that
expected - TD
    ** Lowers its average 2021 benchmark lumber and oriented
strand board (OSB) price forecasts by 13% and 17%, respectively 
    ** TD trims PT of Canfor Corp to C$37 from C$39; cuts PT on
Interfor to C$42 from C$45 and Western Forest Products' to
C$2.75 from C$3 
    ** TD says top pick in the sector is West Fraser  WFG.TO  
    ** Shares of Canfor, Interfor and Western Forest Products
slide ~3.5% each 

 (Reporting by Rithika Krishna in Bengaluru)
 ((Rithika.Krishna@thomsonreuters.com;))