PotlatchDeltic Downgraded To Sector Perform: Examining Limited Upside Post 23% Share Price Rise
Portfolio Pulse from Lekha Gupta
RBC Capital Markets analyst Paul C. Quinn has downgraded PotlatchDeltic Corp (NASDAQ:PCH) to 'Sector Perform' from 'Outperform' with a price target of $55. This comes after PCH's share price rose by 23%, outperforming its timber REIT peers. The analyst sees limited upside from here but expects share repurchase activity to increase due to rising lumber prices. The 2023 adjusted EBITDA estimate was raised by 5.6% to $236.8 million, but the 2024 forecast was lowered by 6.8% to $320.1 million.
July 19, 2023 | 4:46 pm
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PotlatchDeltic Corp has been downgraded by RBC Capital Markets due to limited upside after a 23% share price rise. However, share repurchase activity is expected to increase due to rising lumber prices.
The downgrade by RBC Capital Markets suggests that the analyst sees limited growth potential for PCH in the near term, which could negatively impact the stock price. However, the expected increase in share repurchase activity, driven by rising lumber prices, could provide some support to the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100