One analysts view of WEF upside - from seeking alpha
Summary
- Stock is undervalued to peers due to a slow last half in 2014, and less exposure to the US.
- However the companies wide product offering and ongoing efforts to increase margins reduce risk.
- In time as strength in US demand for lumber softens, the company will be well positioned to profit from other markets, making it a potential takeover target.
THE PITCH
Western Forest Products(OTCPK:WFSTF) is undervalued. In spite of having a great product mix, clients over the globe and a clean balance sheet, the company still trades to a discount to peers, as well as to my estimation of intrinsic value. Their diverse geographical segments will play in their favor in years to come. In this report I will explain why I believe the security has 40% upside. I will also discuss why I believe it might be a takeover target down the line, which could offer as much as an 80-100% return.