RE:Raymond James Upgrade Wow, now I see why analysts are forecasting lumber prices to be so low for the year. If they would base their price targets on current prices the price targets may just have 500% upside.
That analyst in the article changed his forecast for lumber prices in 2021 to average $900 instead of $700, and lumber prices in 2022 to average $600 instead of $500 due to higher break even costs for BC mills.
As a result he reiterated his price target to $60, unbelievable.
Now imagine if lumber prices stay above $1000/mfbm for the rest of the year. These lumber companies will be generating lots of cash that will help improve their balance sheets.
Not to mention IFP is the most attractive stock trading at the lowest EV/EBITDA and P/E ratio in the industry. Not to mention their EBITDA and profit margins are the highest in respect to their peers.
5 weeks left in this record Q2 and lumber prices are currently in the $1600 range.