West Fraser Timber Co. Ltd. (WFG) Earns Outperform Rating Amid Supply Constraints

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On January 14, Raymond James upgraded West Fraser Timber Co. Ltd. (NYSE:WFG) to Outperform from Market Perform and raised its price target to $75 from $70, citing improving industry fundamentals. The firm believes forest products likely bottomed in 2025 following a prolonged downturn, leaving valuations compressed and positioning the group for potential upside in 2026. Tightening lumber and oriented strand board supply, limited new capacity, and discounted equity prices skew the risk/reward profile favorably despite ongoing housing market volatility.

On February 11, West Fraser Timber Co. Ltd. (NYSE:WFG) reported fourth-quarter 2025 sales of $1.165 billion and a net loss of $751 million, largely driven by $712 million in restructuring and impairment charges. Full-year sales totaled $5.462 billion with a net loss of $937 million, while adjusted EBITDA declined to $56 million for the year amid oversupplied southern yellow pine and oriented strand board markets, elevated duties, and new U.S. tariffs. Despite near-term margin pressure and mill curtailments, the company continued advancing major capital projects and maintained shareholder returns through dividends and buybacks. With restructuring actions largely recognized and supply discipline improving across the industry, West Fraser appears positioned to benefit from any cyclical recovery in North American housing and construction demand, offering leveraged upside as pricing conditions normalize.

Founded in 1955 and headquartered in Vancouver, West Fraser Timber Co. Ltd. (NYSE:WFG) is a diversified wood products manufacturer producing lumber, oriented strand board, plywood, pulp, and other building materials.

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