Rayonier’s Strategic Shift and Market Conditions Justify Buy Rating

In a report released today, Buck Horne from Raymond James upgraded Rayonier (RYN – Research Report) to a Buy, with a price target of $31.00.

Buck Horne has given his Buy rating due to a combination of factors, primarily driven by Rayonier’s strategic exit from its New Zealand joint venture. This move has not only provided the company with significant capital but also positioned it as a U.S.-focused timber REIT with a strong balance sheet and substantial timberland assets.
Additionally, the proceeds from the sale offer Rayonier the flexibility to pursue new acquisitions, repurchase shares, and potentially issue a special dividend to shareholders. The company is also poised to benefit from favorable market conditions, such as rising lumber prices and potential advantages from U.S./Canada trade dynamics. These strategic and market-driven factors contribute to the belief that Rayonier’s current valuation is undervalued, justifying the Buy rating.