Potlatch Corp. Rating Increased to Buy at DA Davidson (PCH)
Potlatch Corp. (NYSE:PCH) was upgraded by analysts at DA Davidson from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Thursday, TheFlyOnTheWall.com reports. The firm currently has a $46.00 price objective on the stock. DA Davidson’s target price would suggest a potential upside of 20.51% from the company’s current price.
The analysts wrote, “Potlatch is the only Timber REIT to not raise its dividend in 2013, and we think that will soon change. The company has no significant near-term debt maturities, and has out-earned its dividend distribution by 32% on an FAD basis in the last twelve months. Given where we are in the early stages of a housing recovery, and where we expect Potlatch’s cash to end up by the end of FY 2013, we suspect Potlatch will raise its dividend toward the average of its larger peers – best guess a 10% ($1.24 to $1.36) hike.”
Separately, analysts at RBC Capital initiated coverage on shares of Potlatch Corp. in a research note to investors on Friday, September 6th. They set a “sector perform” rating on the stock. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus target price of $44.98.
Shares of Potlatch Corp. (NYSE:PCH) traded up 3.80% on Thursday, hitting $39.62. The stock had a trading volume of 79,325 shares. Potlatch Corp. has a 52-week low of $36.96 and a 52-week high of $51.48. The stock has a 50-day moving average of $39.49 and a 200-day moving average of $43.30. The company has a market cap of $1.606 billion and a price-to-earnings ratio of 23.16.
Potlatch Corp. (NYSE:PCH) last issued its quarterly earnings data on Wednesday, July 24th. The company reported $0.47 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.30 by $0.17. The company had revenue of $133.20 million for the quarter, compared to the consensus estimate of $135.95 million. During the same quarter last year, the company posted $0.13 earnings per share. Potlatch Corp.’s revenue was up 13.4% compared to the same quarter last year. Analysts expect that Potlatch Corp. will post $1.85 EPS for the current fiscal year.
Potlatch Corporation is a real estate investment trust. Through the Company’s wholly owned subsidiaries, it operates real estate sales and development business, and five wood products manufacturing facilities that produce lumber and plywood.
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