Weyerhaeuser (WY) is positioned to create value over the long term and its advantages over Canadian lumber remain underappreciated, RBC Capital Markets said in a note Friday.

The favorable setup for the stock is supported by a pathway to considerably grow EBITDA through 2030, a solid balance sheet, and moderate improvement in lumber markets, analysts wrote.

Some recent headwinds could become tailwinds, including the rising prices of Doug-fir lumber in the past two months that should translate into stronger prices for sawtimber, and China resuming log imports from the US West could drive incremental export demand, according to the note.

The Japanese housing starts trough in 2025 partly reflects challenges adapting to revisions to the Building Standards Act that impacted building with wood, but management expects improving demand as inventories normalize, RBC said.

Higher duties and new tariffs on Canadian lumber could also support increased lumber production in the US, according to analysts.

RBC reiterated its outperform rating on the stock, with a price target of $30 per share.

Price: 25.81, Change: +0.04, Percent Change: +0.14