DA Davidson Highlights Timberland Upside in Weyerhaeuser's (WY) Medium-Term Plan

Weyerhaeuser Company (NYSE:WY) is included among the 15 Dividend Stocks with Low Payout Ratios and Strong Upside.

On December 15, DA Davidson kept a Buy rating and a $31 price target on Weyerhaeuser Company (NYSE:WY). The firm said it was encouraged by the medium-term goals management laid out at its Investor Day last week. DA Davidson pointed to the expected $380 million uplift from Timberlands and Strategic Land Solutions, noting that even in a downside case, it would reinforce confidence in per-acre values used in current net asset value estimates. More likely, the firm said, those initiatives support upside through better yield accretion.

Separately, Weyerhaeuser Company (NYSE:WY) and Aymium announced they signed a memorandum of understanding to work together on producing and selling 1.5 million tons of sustainable biocarbon each year for use in metals manufacturing. As a first step, the companies formed a joint venture called TerraForge Biocarbon Solutions.

The venture plans to build a jointly owned facility next to Weyerhaeuser’s lumber mill in McComb, Mississippi. At that site, wood fiber will be converted into biocarbon using a low-emissions, combustion-free process. Under the agreement, the partners intend to secure long-term sales contracts and identify sites for additional production facilities across Weyerhaeuser’s footprint over the next five years. The expansion brings together Weyerhaeuser’s large timberland base and manufacturing network with Aymium’s proprietary technology and experience producing biocarbon products.

Once fully scaled, the network could convert more than 7 million tons of wood fiber supplied exclusively by Weyerhaeuser and produce 1.5 million tons of metallurgical-grade biocarbon annually.

Weyerhaeuser Company (NYSE:WY) is one of the world’s largest private owners of timberlands. Founded in 1900, the company owns or controls about 10.4 million acres of timberlands across the US.

While we acknowledge the potential of WY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Highest Paying Monthly Dividend Stocks to Buy and 10 Best Debt Free Dividend Stocks to Buy Now.

Disclosure: None.