The Globe and Mail reports in its Saturday, Nov. 15, edition that Raymond James analyst Daryl Swetlishoff has cut his rating on Interfor ($17.90) and West Fraser Timber ($58.77) to "outperform" from "strong buy." The Globe's Darcy Keith, Jody White and Tim Shufelt write in the Eye On Equities column that Mr. Swetlishoff trimmed his targets for Interfor and West Fraser Timber to $21.25 and $68. Following a new review of the sector Mr. Swetlishoff came to the conclusion that the outlook is bright for forest products and building materials.
The analyst says, "Our lumber market outlook hasn't changed and we remain bullish on the medium- to long-term outlook, as U.S. housing activity levels grind higher." He views current lumber markets as "balanced," with steady Chinese shipments and United States shipments growing along with housing starts.
The Globe reported on Jan. 29 that Mr. Swetlishoff rated West Fraser Timber and Interfor "outperform" and "strong buy," when they were worth $57.32 and $15.45. The Globe's Scott Barlow said the weak loonie was good for West Fraser Timber and Interfor on Oct. 28. West Fraser Timber and Interfor were then trading at $54.11 and $15.94.
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