Goldman Sachs Raises PCL Target To $42 From $38

Goldman Sachs is raising its 12-month price target for Plum Creek Timber Company, Inc. PCL to $42 (from $38) “as we are discounting by one less period given the passage of time.” “Our price target is based on discounted estimated asset value and normalized wood products profitability,” Goldman Sachs writes. “Based on our 2011 estimates, PCL shares are trading at 30.6X P/E and a 4.5% free cash flow yield. On a per acre basis (assuming $200 million value for its manufacturing business), PCL trades at an EV/acre of $1,211, inline with current timberland values.” Plum Creek Timber closed Monday at $41.87.