Zacks Investment Research upgraded shares of Plum Creek Timber Co. Inc. (PCL) from NEUTRAL to OUTPERFORM on October 05, 2012, with a target price of $51.00.
We are changing our recommendation for Plum Creek from Neutral to Outperform based on upward earnings estimate revisions. Plum Creek reported strong second quarter 2012 results with earnings beating the Zacks Consensus Estimate by $0.04. 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. In addition, the upsurge in demographic trends driving housing markets and demand for real estate properties across the country provides a strong economic backdrop for the company to demonstrate solid financial performance in the future. However, cyclical nature of the business, cutthroat competition, and strict environment policies undermines its long-term growth potential to some extent.
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