Tuesday, February 26, 2019

Weyerhaeuser Should Be On More Stable Footing Now

Weyerhaeuser (NYSE:WY) has done okay since my last update on this timberland and wood products company, but I still believe the share price doesn't reflect the full value of the company's assets and operations. The company is still vulnerable to weakness in the U.S. housing market, and I'm not thrilled about the long-term outlook for lumber, but I think the shares may be past the nadir for sentiment unless housing really struggles from here.

2019 won't be a banner year for EBITDA or cash flow, but I don't think the company needs to revise the dividend, and there are some further strategic moves the company may want to consider. With fair value in the $30s, I think there are still sound arguments for owning these shares, though they're probably not well suited to impatient investors.

Read more here:
Weyerhaeuser Should Be On More Stable Footing Now

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