Q: What is your outlook for WFG? It has been beaten down and could be basing.
5i Research Answer:
We think the outlook is OK. Of course, trade wars are not helping here, and the company does have some economic sensitivity. But consensus still calls for very good earnings growth over the next 24 months, and it is debt-free with some cash. Cash flow remains decent. Valuation is quite high on lowered EPS expectations, but if we look to 2026 it is better-priced at 15X earnings. It would still be our favourite within the forestry sector.