West Fraser Timber Co. Ltd. (WFG, Financial) announced its first-quarter revenue for 2025, coming in at $1.459 billion, which fell short of the market consensus of $1.51 billion. The company attributes its performance to the ongoing adjustments in supply and demand dynamics that have been prevalent in recent quarters.
The Lumber segment of West Fraser posted its strongest performance in over two years, despite operating below mid-cycle economic conditions. This improvement is attributed to strategic mill curtailments and closures, as well as a shift towards a portfolio strategy emphasizing production at lower-cost mills.
These strategic changes are part of West Fraser's efforts to optimize its operations, aiming to enhance efficiency and profitability while navigating the industry's current economic landscape. The company continues to adapt by focusing on cost-effective production to improve its financial performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for West Fraser Timber Co.Ltd (WFG, Financial) is $102.00 with a high estimate of $105.00 and a low estimate of $99.00. The average target implies an upside of 36.82% from the current price of $74.55. More detailed estimate data can be found on the West Fraser Timber Co.Ltd (WFG) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, West Fraser Timber Co.Ltd's (WFG, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for West Fraser Timber Co.Ltd (WFG, Financial) in one year is $73.94, suggesting a downside of 0.82% from the current price of $74.55. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the West Fraser Timber Co.Ltd (WFG) Summary page.
