PotlatchDeltic (PCH) Stock Forecast & Price Target

PotlatchDeltic Corp is positioned for a positive outlook due to its three revenue-generating segments, with the timberlands and wood products segments contributing the majority of the company's revenue. The company's share price is anticipated to increase based on significant earnings gains, particularly in the early stages of the economic cycle, which may occur before major improvements in EBITDA. Additionally, while there are expected increases in duties impacting the industry, the company's strong fundamentals suggest resilience and potential for growth amidst these challenges.

PotlatchDeltic Corp's outlook is negatively impacted by the deteriorating profitability of Canadian lumber mills, particularly in British Columbia, due to increasing antidumping (AD) and countervailing duties (CVD), which have exacerbated operational costs. Elevated mortgage rates and a financially strained US consumer are further hindering demand for lumber, creating an unfavorable environment for the wood products segment. Additionally, significant closures in North American lumber supply, estimated at approximately 2.7 billion board feet, reflect softer remodeling and renovation activity, thereby contributing to a challenging supply-demand landscape for the company’s segments.