Raymond James, DS strong buy $3 target 2018-11-22 08:19 ET - In the News
The Globe and Mail reports in its Thursday edition that Raymond James analyst Daryl Swetlishoff says Western Forest Products' $30.5-million (U.S.) purchase of Columbia Vista, a Washington State-based lumber manufacturer, matches with its strategy and complements other recent acquisitions. The Globe's David Leeder writes that in response to the deal, Mr. Swetlishoff raised his revenue and earnings before interest, taxes, depreciation and amortization projections for fiscal 2019. He continues to rate the share "strong buy," with a $3 share target. Analysts on average target the shares at $2.81. Mr. Swetlishoff says in a note: "We regard this acquisition as another diversification step for the company to increase exposure to the US PNW, which is further complimented by the acquisition of the Arlington facility in early 2018. The company supports a healthy balance sheet with no debt and a net cash position of $42.8-million (as of 3Q18) prior to the acquisition, which will be used to fund the purchase price in addition to available credit facilities. With the company's well-developed Japanese channels in place, we are confident that the acquisition complements their existing Douglas Fir specialty product offerings."
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