Weyerhaeuser initiated with an Overweight at JPMorgan

JPMorgan initiated coverage of Weyerhaeuser (WY) with an Overweight rating and $31 price target as part of the firm’s launch on timber REITs. Earnings growth could inflect as wood products fundamentals improve, particularly in lumber, following years of headwinds due to weak product demand, and potential presidential actions could benefit both pricing and demand, the analyst tells investors in a research note. Valuation is attractive, and JPMorgan likes the long-term economics of the company’s fast-growing Natural Climate Solutions business, with initiatives like solar offering significant income upside compared to timber.