Friday, September 17, 2010

Plum Creek Timber (NYSE:PCL) Getting Coverage from Keefe, Bruyette & Woods

Keefe, Bruyette & Woods announced they have initiated coverage on the real estate investment trust (REIT) Plum Creek Timber (NYSE:PCL).

They began their coverage with a "Market Perform" rating and a price target of $38.

"Trading at roughly 13.8x 2011 EBITDA and an implied per-acre value of $1,060, we view current valuation as compelling. However, given an operational dependency on residential construction, we see limited opportunity for positive catalysts to drive significant valuation expansion over the next 12 months," said KBW.

Plum Creek, which closed at $35.64 Thursday, owns and manages timberlands in the U.S.

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