#6 - West Fraser Timber (NYSE:WFG)
In the introduction to this article, I reference the recent spike in lumber prices. The Covid-19 pandemic created a supply shortage that is only now starting to be resolved. And that makes West Fraser Timber (NYSE:WFG) a stock to buy.
It’s true that lumber prices may have reached their peak in early May. At that time, the price per board foot of lumber was over $1,600. But even if it drops to around $600 by the end of the year, it will be double the price it was in May 2020.
At this time, WFG stock does not receive much analyst attention. However the two analysts that cover the stock give it a consensus price target of $98 which would be a 36% from the stock’s current level.
West Fraser will benefit from a situation that is no more complicated than demand surpassing supply for the foreseeable future. Investors should look for any pullbacks as opportunities to buy WFG stock.
About West Fraser Timber
West Fraser Timber Co Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy. It offers spruce-pine-fir, douglas fir-larch, hem-fir, and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products, as well as particleboards.
Read More - Current Price
- $94.10
- Consensus Rating
- Buy
- Ratings Breakdown
- 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $111.60 (18.6% Upside)
