Rayonier Seen Positioned for Cash-Flow Growth as Lumber Prices Recover, RBC Says

MT Newswires Live
May 09

Rayonier (RYN) is seen benefiting from stronger lumber prices, expanding solar-land opportunities and continued share repurchases, RBC Capital Markets said Thursday in a report.

RBC highlighted Rayonier's "solid balance sheet," flexible capital-allocation strategy and the operational benefits from its merger with PotlatchDeltic.

Improving lumber prices should support log prices over time, particularly in the Northwest and Idaho, though management described current Northwest log markets as "softer" and "more tenuous" than in prior years, the report said.

Expansion of Rayonier's land-based solutions platform should support long-term cash flow, given the significantly higher per-acre economics and strong free-cash-flow conversion associated with solar-option acreage, the report said.

RBC reiterated its sector perform rating on Rayonier stock and its $24 price target.

Price: 20.49, Change: +0.07, Percent Change: +0.37

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