Citi Reaffirms Confidence in Weyerhaeuser (WY) with Higher Price Target

Core Viewpoint - Weyerhaeuser Company (NYSE:WY) is recognized as one of the best real estate stocks to buy according to hedge funds, reflecting strong market confidence in the company [1]. Group 1: Price Recommendations and Analyst Insights - Citi raised its price target for Weyerhaeuser to $32 from $30, maintaining a Buy rating, indicating continued confidence in the stock [2]. - Truist also increased its price objective to $29 from $28 while keeping a Hold rating, attributing weaker fourth-quarter volumes to timing issues related to sales pushed into summer months before a decline in log prices [2]. - Weyerhaeuser's Q1 EBITDA outlook is expected to remain flat quarter-over-quarter due to lower pricing and volumes, with management holding back some activities for later in the year when log prices are anticipated to improve [2]. Group 2: Financial Performance and Market Conditions - The company reported an adjusted loss of $0.09 per share for the quarter, down from a profit of $0.11 per share a year earlier, with the housing market being a significant headwind due to higher mortgage rates [3]. - Pending home sales decreased by 3% from the previous year, reflecting weaker job growth and broader economic uncertainty [3]. Group 3: Operational Insights - Weyerhaeuser's timberlands segment is expected to show modest improvement in early 2026, with slightly higher sales volumes and lower log and haul costs anticipated in the first quarter [4]. - The company operates as a timberland-focused REIT and is one of the largest private timberland owners in North America, controlling approximately 10.4 million acres in the US and managing additional timberlands in Canada under long-term agreements [4].