.September 12, 2024 02:51:00 PM

PotlatchDeltic (NASDAQ:PCH) saw a 4% increase in shares today after BofA Securities upgraded the company to Buy from Neutral, with a new price target of $51. The analysts cited the stock’s 20% underperformance year-to-date as a key reason for the upgrade, predicting over 20% upside potential. Lumber prices, currently at a cyclical low, present growth opportunities for PotlatchDeltic, with potential EBITDA increases of 25% for every $50 per mbf rise in prices. The company’s favorable cost structure and expansion of the Waldo mill are expected to boost lumber margins and competitive position in the market.