WEF going to RIDE the TailCoats of the BIG 3 ????????????// These 3 BIG GUYs went UP 10% Yesterday
So can WEF get Dragged UP with Them eh !!!!!!!!!
Canfor, Interfor and West Fraser Timber Upgraded to Outperformer at CIBC
26 Jan 2023 07:41 ET
07:41 AM EST, 01/26/2023 (MT Newswires) -- CIBC Capital Markets analyst Hamir Patel upgraded three Canadian lumber stocks to Outperformer from Neutral: Canfor Corp. (CFP.TO), Interfor Corp. (IFP.TO) and West Fraser Timber Co. Ltd. (WFG.TO).
Patel raised his price targets on the stocks to $29 from $25, to $31 from $27, and to $130 from $120, respectively.
"With housing affordability improving and a significant removal of BC lumber industry capacity from Canfor, we are upgrading the three major lumber companies," the analyst said in a note to clients.
"When we moved to the sidelines on the group on October 3, 2022, we pointed to significant downside risk to estimates. Since then, mortgage rates have pulled back approximately 65 basis points to 6.18% (after peaking at 7.37% in mid-October); consensus EBITDA estimates on CFP/IFP/WFG for 2023 have subsequently declined by approximately 45%; and the Canadian LumberCos have underperformed the TSX Composite by an average of approximately 7%," Patel said.
"While we still believe sell-side consensus estimates are overly optimistic for 2023/24 (we are 40%/20% below the Street), we expect the improving housing affordability narrative and BC supply shuts to drive the stocks higher," the analyst said.