Weyerhaeuser stock dives toward 21-month low after BofA downgrades, amid ‘looming recession’

Shares of Weyerhaeuser Co. WY, -5.85% took 6.4% dive in afternoon trading, toward a 21-month low, after BofA Securities analyst George Staphos downgraded the paper and forest products company, citing a lower outlook for operating rates and pricing for wood products and a “looming recession.” Staphos cut his rating to neutral from overweight, and lowered his price target to $34 from $38. “At this juncture, operating rates in 2023 look like they’ll pierce 80%, prompting more downward pricing pressure on the sector’s products,” Staphos wrote in a note to clients. Weyerhaeuser’s stock, which was on track for the lowest close since December 2020, has tumbled 27.9% year to date, while the S&P 500 SPX, -0.89% has shed 19.6%. BofA’s Staphos also downgraded Louisiana-Pacific Corp. LPX, -4.03% to underperform from neutral, and the stock slumped 5.0% in afternoon trading. It has sunk 33.8% this year.