DA Davidson has reaffirmed its Buy recommendation for Weyerhaeuser (NYSE: WY) and kept its price target at $31.00 following the company’s fourth-quarter 2025 financial report. That target implies roughly 19.6% upside from the stock’s most recently cited price of $25.93 and sits below the sector’s loftier analyst outliers, with the consensus average recommendation remaining at 1.75 (Buy) and a reported high target of $38.
The research team said the company’s Q4 2025 results modestly outperformed their internal forecasts, prompting a raise to DA Davidson’s fiscal 2026 EBITDA estimate of 4%. The uplift was driven in part by expectations for a robust start to 2026 in Weyerhaeuser’s Land-Based Solutions business, which the firm identified as a primary factor behind an increase in first-quarter 2026 projections.
Market-data cited by the research firm highlights a mixed financial picture. Weyerhaeuser is trading at a high price-to-earnings multiple of 57.52, and the company’s gross profit margin stands at 14.84%, metrics that underscore valuation and profitability concerns despite the recent operational beat. DA Davidson also pointed to elevated leverage as a balance-sheet issue: year-end 2025 leverage was reported at 5.0x. The analyst group projects leverage will come down to 4.3x by the end of 2026, a forecast that does not assume any additional opportunistic divestitures that the company might pursue.
On the shareholder-return front, Weyerhaeuser continues a lengthy record of dividend payments, having paid dividends for 55 consecutive years and currently yielding 3.26%.
Weyerhaeuser’s Q4 2025 earnings results included an earnings-per-share figure of $0.10, which beat analysts’ expectations, while revenue for the quarter narrowly missed consensus forecasts. DA Davidson and market observers interpreted the EPS beat as evidence of disciplined cost management and the impact of strategic initiatives. The stock reacted positively in pre-market trading following the release, suggesting investor approval of the results despite the revenue shortfall.
The company’s recent performance and the analyst update present a mix of constructive near-term indicators and persistent structural challenges. DA Davidson’s maintained Buy rating and raised EBITDA outlook reflect confidence in operational momentum, particularly within Land-Based Solutions, while investors must weigh that view against a rich valuation, slim gross margins, and leverage that remains elevated though forecast to decline through 2026.
Bottom line: DA Davidson remains constructive on Weyerhaeuser after a modest quarterly beat and a higher EBITDA outlook for fiscal 2026, but the stock’s current multiple, narrow gross margin, and elevated leverage temper the bullish case.