Key Highlights:
- Weyerhaeuser Co (WY, Financial) is divesting its Princeton lumber mill for C$120 million, potentially yielding a significant gain and a tax liability of C$15 million.
- Analysts provide a positive outlook, with an average price target suggesting a 38.20% upside from the current stock price.
- GuruFocus estimates indicate a 14.22% potential increase based on the GF Value metric.
Weyerhaeuser Co (WY) has strategically decided to sell its Princeton lumber mill and associated timber assets located in British Columbia to Gorman Bros. Lumber for a total of C$120 million. This transaction, translating to roughly US$86.5 million in cash, is expected to generate a favorable gain for the company, accompanied by an estimated tax liability of approximately C$15 million.
Analysts' Price Predictions and Recommendations
Presenting an optimistic perspective, a consensus of 10 analysts has formulated a one-year average price target of $34.80 for Weyerhaeuser Co (WY, Financial). This projection includes a high estimate of $38.00 and a low estimate of $30.00, indicating a robust potential upside of 38.20% from the current trading price of $25.18. For further insights and comprehensive estimate data, visit the Weyerhaeuser Co (WY) Forecast page.
In terms of brokerage recommendations, 13 firms collectively assign Weyerhaeuser Co (WY, Financial) an average recommendation score of 2.1, signifying an "Outperform" status. The rating system, scaled from 1 to 5, categorizes 1 as a Strong Buy and 5 as a Sell.
Assessing the GF Value and Investment Potential
According to GuruFocus, the projected GF Value for Weyerhaeuser Co (WY, Financial) stands at $28.76 over the next year. This represents a possible 14.22% upside from the current price of $25.18. The GF Value metric is an intrinsic assessment of a stock's fair trading value, determined by historical multiples, the company's previous business growth, and future business performance estimates. For additional data and deeper analysis, refer to the Weyerhaeuser Co (WY) Summary page.
