Update shared on 06 Nov 2025
Fair value Decreased 2.05%West Fraser Timber's analyst price target was lowered from C$122 to C$119. This reflects a modest shift as analysts cite updated margin expectations and slight adjustments to valuation assumptions.
Analyst Commentary
Analysts have recently adjusted their outlook for West Fraser Timber, reflecting both supportive and cautious perspectives on the company's prospects and valuation.
Bullish Takeaways
- Bullish analysts continue to highlight West Fraser Timber's robust operational execution, which underpins its strong industry position and supports forward earnings estimates.
- Resilient performance in core business segments contributes to confidence that the company can sustain margin levels despite industry headwinds.
- Ongoing cost discipline and efficiency measures are seen as positive for long-term profitability and potential margin expansion.
Bearish Takeaways
- Some bearish analysts point to pressure on valuation multiples, which has led to more conservative price targets in light of sector uncertainties.
- Updated margin expectations suggest that short-term earnings growth may be slightly muted, leading to a more cautious outlook in the near term.
- Potential volatility in commodity prices and softening demand in certain markets remain factors that could affect overall performance.
What's in the News
- West Fraser Timber completed the repurchase of 1,295,215 shares, representing 1.63% of its outstanding shares, for a total of $97.01 million as part of its ongoing buyback program announced in February 2025 (Key Developments).
- Between June 28, 2025 and September 26, 2025, the company repurchased 553,467 shares, accounting for 0.7% of its share base, for $40.45 million (Key Developments).
Valuation Changes
- Fair Value: Lowered from CA$115.50 to CA$113.12. This reflects a modest decrease in estimated intrinsic value.
- Discount Rate: Narrowed slightly from 7.42% to 7.38%. This suggests a small reduction in the company's risk assessment.
- Revenue Growth: Revised upward from 5.20% to 5.32%. This indicates slightly stronger growth expectations.
- Net Profit Margin: Decreased from 9.63% to 9.06%. This points to a more cautious outlook on profitability.
- Future P/E: Increased from 11.59x to 11.85x. This signals a higher expected earnings multiple in future periods.
Disclaimer
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