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WY: Share Repurchases Will Drive Future Upside Despite Lower Margin Outlook

Enterprise Strength And New Industry Partnerships Will Shape Long-Term Performance

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WY
AnalystConsensusTarget
Not Invested
Published 08 Aug 2024

Update shared on 06 Dec 2025

Fair value Decreased 0.50%
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AnalystConsensusTarget's Fair Value
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1Y
-20.5%
7D
5.6%

Analysts have trimmed their average price target on Weyerhaeuser slightly, from approximately 30.33 dollars to 30.18 dollars, citing more conservative assumptions for revenue growth and profit margins, despite a higher projected future P E multiple.

What's in the News

  • Completed a share repurchase of 1,994,639 shares, representing 0.28% of outstanding shares, for a total of 44.95 million dollars under the buyback program announced on May 8, 2025 (company disclosure)
  • Between July 1, 2025 and September 30, 2025, repurchased 980,114 shares, or 0.14% of shares outstanding, for 25.18 million dollars as the final tranche of the current buyback authorization (company disclosure)
  • Outlined a strategic growth plan, enterprise capability initiatives, and financial targets through 2030 at its Analyst and Investor Day, signaling a focus on long term value creation and margin expansion (Analyst/Investor Day)

Valuation Changes

  • Fair Value Estimate was reduced slightly from approximately 30.33 dollars to 30.18 dollars per share, reflecting modestly more conservative assumptions.
  • The Discount Rate increased marginally from about 7.82 percent to 7.84 percent, implying a slightly higher required return on equity.
  • Revenue Growth was lowered significantly from roughly 5.74 percent to 3.49 percent, signaling a more cautious outlook on top line expansion.
  • Net Profit Margin was reduced meaningfully from about 12.56 percent to 7.35 percent, indicating expectations for weaker profitability.
  • Future P E was raised sharply from around 25.6 times to 46.4 times, implying a higher valuation multiple on forecast earnings despite lower growth and margin assumptions.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.