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Diversified wood products company West Fraser Timber (WFG) has increased its quarterly dividend by 25% to C$0.25 per share.
The dividend is payable on July 6 to investors of record on June 21.
Additionally, the company increased its share buyback authorization to up to approximately 9.58 million of its common shares. The previous authorization for share buybacks was for approximately 6.04 million shares.
As of June 7, West Fraser had repurchased about 3.86 million shares at an average price of $88.08 per share. Approximately 5.72 million shares remain available for repurchase. (See West Fraser Timber stock analysis on TipRanks)
Recently, TD Securities analyst Sean Steuart reiterated a Buy rating on the stock and increased the price target to 95 (33.8% upside potential) from $91.
Steuart noted positive revisions to West Fraser’s commodity price deck across lumber, structural panels, pulp, and paper for 2021 and 2022 and accordingly increased his earnings forecasts.
Based on 5 unanimous Buys, consensus among analysts is a Strong Buy. The WFG average analyst price target of $108.65 implies 53% upside potential.
Shares have gained about 86.6% over the past year.