RBC Sees Acquisition Opportunities for West Fraser (WFG) as Wood Products Market Weakens Further

West Fraser Timber Co. Ltd. (NYSE:WFG) ranks among the best sustainability stocks to invest in. On October 24, RBC Capital reaffirmed its Outperform rating on West Fraser Timber Co. Ltd. (NYSE:WFG) but reduced its price target from $92 to $91.

This follows the company’s October 23 earnings results for the third-quarter of 2025, which showed significant losses amid difficult market conditions. In almost every indicator, West Fraser’s Q3 2025 financial results showed a significant decline from the previous quarter. The company’s adjusted EBITDA margin changed from 6% to -11%, while sales dropped to $1.307 billion from $1.532 billion in the second quarter.

According to the firm, West Fraser’s low-cost strategy, favorable softwood lumber duty rate, geographic diversification, and robust financial sheet, put the company in a position to weather a variety of wood products market conditions for the rest of 2025 and 2026.

Moreover, RBC believes West Fraser Timber Co. Ltd. is in a strong position to potentially acquire premium assets that could become available if the market continues to experience a downturn.

West Fraser Timber Co. Ltd. is a diversified wood products company that produces lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals.

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This article is originally published at Insider Monkey.