West Fraser Timber upgraded to Outperform from Neutral at Credit Suisse

Credit Suisse analyst Andrew Kuske upgraded West Fraser Timber to Outperform from Neutral with a price target of $95, down from $100. While the firm fully acknowledges some housing market headwinds, it also notes that the rate debate, housing market trends in the second half of 2023 and industry actions collectively provide an interesting risk-reward for West Fraser Timber’s shares. Continued deceleration of housing market trends, weaker lumber prices and, in some cases, higher underlying cost structures are motivating a collection of curtailments. Such actions will help re-balance parts of the market and are broadly supportive of the upgrade to Outperform thematically, Credit Suisse adds.