- Truist Securities analyst Michael Roxland initiated coverage on Rayonier Inc (NYSE:RYN) at Hold with a price target of $33.
- As RYN is a pure-play timber REIT, the analyst sees the absence of ancillary businesses, such as volatile wood products, as a competitive advantage for the company.
- Roxland believes RYN’s focus on timberland, a stable and cash-generative business, should offer earnings growth.
- The analyst is also bullish on the increasing presence in the U.S. South markets, driving higher EBITDDA.
- However, the analyst expects continued sluggishness U.S. housing market in the near term on higher financing costs and lower affordability, leading to lower demand for wood products and timber as a matter of concern.
- Roxland projects 2024 revenues and EPS of $931 million and $0.50 (versus the consensus of $0.64), respectively.
- Price Action: RYN shares are trading lower by 2.2% at $29.25 on the last check Tuesday.
US Stocks Higher; Producer Prices Fall In December
U.S. stocks traded higher this morning, following the release of PPI data on Friday.
Following the market opening Friday, the Dow traded up 0.08% to 37,739.53 while the NASDAQ rose 0.49% to 15,042.81. The S&P 500 also rose, gaining, 0.40% to 4,799.13.
