In the last 30 days, fiscal earnings estimates have been lowered by nearly all analysts covering the stock, driven by the cyclical nature of the business, cut-throat competition, and strict environment policies. However, Plum Creek is the largest publicly-held timber REIT, with a diversified timber and land base that enables it to benefit from large economies of scale.
The stock, however, is trading at a premium to the peer group based on forward earnings estimates. Our target price of $34.00, 25.6X 2010 EPS, reflects our belief that PCL will perform well below the broader market.
PLUM CREEK TMBR (PCL): Free Stock Analysis Report
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