RBC sees acquisition opportunities for West Fraser (WFG) as wood products market weakens further

RBC sees acquisition opportunities for West Fraser (WFG) as wood products market weakens further
RBC sees acquisition opportunities for West Fraser (WFG) as wood products market weakens further

West Fraser Timber Co. Ltd. (NYSE:WFG) is among the The best sustainability stocks to invest in.. On October 24, RBC Capital reaffirmed its Outperform rating on West Fraser Timber Co. Ltd. (NYSE:WFG), but lowered its price target from $92 to $91.

Best Lumber Stocks to Buy
Best Lumber Stocks to Buy

Photo by René Schubert on Unsplash

This follows the company’s October 23 earnings results for the third quarter of 2025, which showed significant losses amid difficult market conditions. By almost every measure, West Fraser’s third quarter 2025 financial results showed a significant decline from the previous quarter. The company’s adjusted EBITDA margin changed from 6% to -11%, while sales fell to $1,307 million from $1,532 million in the second quarter.

According to the company, West Fraser’s low-cost strategy, favorable softwood lumber tariff rate, geographic diversification and strong financial sheet positioned the company to weather a variety of wood products market conditions through the remainder of 2025 and 2026.

Additionally, RBC believes West Fraser Timber Co. Ltd. (NYSE:WFG) is in a strong position to potentially acquire premium assets that could become available if the market continues to experience a slowdown.

West Fraser Timber Co. Ltd. (NYSE:WFG) is a diversified wood products company that produces lumber, engineered wood products, pulp, newsprint, wood chips and other waste.

While we recognize WFG’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.

READ NEXT: Top 10 Magic Formula Stocks for 2025 and The 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article was originally published in Internal jumpsuit.

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