
WFG Stock Forecast & Price Target
WFG Analyst Ratings
Bulls say
West Fraser Timber's strong balance sheet, characterized by net cash of approximately $6 per share, provides significant financial flexibility, supporting its operational strategies. The company is experiencing improved demand for Southern Yellow Pine (SYP) products and has successfully curtailed production, positioning itself favorably in a market with a historically high SPF/SYP spread. Additionally, the latest results showed a positive trend with Q2 adjusted EBITDA of $272 million, surpassing both BMO's estimate and consensus expectations, along with robust new home sales indicating recovering market dynamics.
Bears say
West Fraser Timber's outlook appears negative due to a projected 7% reduction in southern yellow pine lumber shipments for 2024 and disappointing realized prices that are 4% below expectations. The company experienced significant challenges in Q3, including lower prices and substantial inventory write-downs totaling $21 million, which are expected to impact overall financial performance. Additionally, the lumber markets continue to face extreme challenges, with producers beginning to cut supply in response to ongoing pressures.
This aggregate rating is based on analysts' research of West Fraser Timber Co. Ltd. and is not a guaranteed prediction by Public.com or investment advice.
WFG Analyst Forecast & Price Prediction
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