RBC Sees Acquisition Opportunities for West Fraser (WFG) as Wood Products Market Weakens Further

West Fraser Timber Co. Ltd. (NYSE:WFG) ranks among the best sustainability stocks to invest in. On October 24, RBC Capital reaffirmed its Outperform rating on West Fraser Timber Co. Ltd. (NYSE:WFG) but reduced its price target from $92 to $91.

Best Lumber Stocks to Buy

Photo by René Schubert on Unsplash

This follows the company’s October 23 earnings results for the third-quarter of 2025, which showed significant losses amid difficult market conditions. In almost every indicator, West Fraser’s Q3 2025 financial results showed a significant decline from the previous quarter. The company’s adjusted EBITDA margin changed from 6% to -11%, while sales dropped to $1.307 billion from $1.532 billion in the second quarter.

According to the firm, West Fraser’s low-cost strategy, favorable softwood lumber duty rate, geographic diversification, and robust financial sheet, put the company in a position to weather a variety of wood products market conditions for the rest of 2025 and 2026.

Moreover, RBC believes West Fraser Timber Co. Ltd. (NYSE:WFG) is in a strong position to potentially acquire premium assets that could become available if the market continues to experience a downturn.

West Fraser Timber Co. Ltd. (NYSE:WFG) is a diversified wood products company that produces lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals.

While we acknowledge the potential of WFG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.

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