Fraser Mackenzie Lowers West Fraser Timber (NYSE:WFG) Price Target to $86.00

Key Points

• Fraser Mackenzie cut its price target on West Fraser to $86 (from $88) but kept a "buy" rating, implying about a 35.8% upside from the current share price.
• Analyst sentiment is mixed — three Buy, three Hold and one Sell — yielding a consensus price target of $82, below Fraser Mackenzie's view.
• Company fundamentals show pressure: West Fraser reported a Q1 loss of $2.40 EPS (missing estimates), negative margins and ROE, and the stock trades around $63.34 with a market cap near $4.8B.

West Fraser Timber (NYSE:WFG - Get Free Report) had its price target lowered by analysts at Fraser Mackenzie from $88.00 to $86.00 in a note issued to investors on Friday,BayStreet.CA reports. The brokerage presently has a "buy" rating on the stock. Fraser Mackenzie's price target suggests a potential upside of 35.78% from the company's current price.

Several other equities research analysts have also issued reports on WFG. TD Securities reissued a "buy" rating and issued a $86.00 price target on shares of West Fraser Timber in a report on Friday. Royal Bank Of Canada set a $81.00 price target on shares of West Fraser Timber in a report on Thursday, April 16th. Zacks Research raised shares of West Fraser Timber from a "strong sell" rating to a "hold" rating in a report on Tuesday, February 24th. Weiss Ratings restated a "sell (d)" rating on shares of West Fraser Timber in a research report on Monday, April 20th. Finally, Raymond James Financial cut shares of West Fraser Timber from an "outperform" rating to a "market perform" rating and decreased their price target for the stock from $85.00 to $75.00 in a research note on Thursday, April 23rd. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, West Fraser Timber has an average rating of "Hold" and a consensus price target of $82.00.

West Fraser Timber Stock Performance

Shares of West Fraser Timber stock traded up $0.03 on Friday, reaching $63.34. The stock had a trading volume of 82,005 shares, compared to its average volume of 225,507. The business's 50-day moving average price is $64.82 and its two-hundred day moving average price is $64.79. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.86 and a current ratio of 2.13. West Fraser Timber has a fifty-two week low of $57.34 and a fifty-two week high of $78.55. The stock has a market cap of $4.82 billion, a P/E ratio of -4.21 and a beta of 1.09.

West Fraser Timber (NYSE:WFG - Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported ($2.40) EPS for the quarter, missing the consensus estimate of ($1.23) by ($1.17). The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.32 billion. West Fraser Timber had a negative net margin of 21.86% and a negative return on equity of 9.36%. On average, sell-side analysts forecast that West Fraser Timber will post -2.5 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Counterpoint Mutual Funds LLC bought a new stake in West Fraser Timber during the first quarter worth approximately $323,000. Physician Wealth Advisors Inc. boosted its holdings in West Fraser Timber by 177.0% during the first quarter. Physician Wealth Advisors Inc. now owns 579 shares of the company's stock worth $38,000 after buying an additional 370 shares in the last quarter. Pictet Asset Management Holding SA boosted its holdings in West Fraser Timber by 2.5% during the first quarter. Pictet Asset Management Holding SA now owns 867,974 shares of the company's stock worth $56,511,000 after buying an additional 21,224 shares in the last quarter. Larry Mathis Financial Planning LLC bought a new stake in West Fraser Timber during the fourth quarter worth approximately $417,000. Finally, T. Rowe Price Investment Management Inc. boosted its holdings in West Fraser Timber by 500.0% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 530,573 shares of the company's stock worth $32,424,000 after buying an additional 442,138 shares in the last quarter. 40.23% of the stock is currently owned by institutional investors.

About West Fraser Timber

West Fraser Timber Co Ltd. NYSE: WFG is a leading North American diversified wood products company headquartered in Vancouver, British Columbia. The company operates a broad portfolio of manufacturing facilities that produce lumber, engineered wood products such as laminated veneer lumber (LVL), oriented strand board (OSB) and plywood, as well as medium density fibreboard (MDF), particleboard, pulp and paper. West Fraser's integrated production model spans harvesting, milling and finishing, allowing it to serve a wide range of residential, commercial and industrial construction markets.

Founded in 1955 as West Fraser Mills, the company has grown through both organic investment and strategic acquisitions to become one of the largest lumber producers in the world.

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