Scotiabank Reduces Earnings Estimates for West Fraser Timber

Key Points

• Scotiabank has significantly reduced its FY2025 earnings per share estimate for West Fraser Timber to ($0.73), a sharp decline from a previous forecast of $3.64.
• Several brokerages, including Raymond James and CIBC, have adjusted their ratings and price objectives for West Fraser Timber, indicating a market trend of cautious outlooks on the stock.
• Despite the earnings outlook downgrade, shares of West Fraser Timber rose by 1.5% on the trading day following the Scotiabank report.

West Fraser Timber Co. Ltd. (TSE:WFG - Free Report) - Scotiabank decreased their FY2025 earnings per share (EPS) estimates for shares of West Fraser Timber in a research report issued to clients and investors on Monday, July 28th. Scotiabank analyst B. Isaacson now anticipates that the company will earn ($0.73) per share for the year, down from their prior forecast of $3.64. The consensus estimate for West Fraser Timber's current full-year earnings is $8.12 per share. Scotiabank also issued estimates for West Fraser Timber's FY2026 earnings at $3.20 EPS.

A number of other research analysts have also recently commented on the company. Raymond James Financial cut West Fraser Timber from a "moderate buy" rating to a "hold" rating in a research report on Monday, July 21st. CIBC cut their price objective on West Fraser Timber from C$170.00 to C$142.00 and set an "outperform" rating on the stock in a research note on Tuesday, April 22nd.

West Fraser Timber Stock Up 0.2%

Shares of TSE WFG traded up C$0.15 during trading hours on Wednesday, hitting C$96.21. The company had a trading volume of 267,349 shares, compared to its average volume of 179,452. The firm's 50 day moving average is C$101.49 and its 200-day moving average is C$107.76. West Fraser Timber has a 1-year low of C$94.66 and a 1-year high of C$141.27. The stock has a market capitalization of C$5.36 billion, a P/E ratio of -57.52 and a beta of 2.03. The company has a quick ratio of 2.10, a current ratio of 1.82 and a debt-to-equity ratio of 7.39.

West Fraser Timber Company Profile

West Fraser Timber Co Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy. It offers spruce-pine-fir, douglas fir-larch, hem-fir, and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products, as well as particleboards.