Rayonier Earnings: Shareholder Value Initiative Sparks Excitement in an Otherwise Lackluster Market

No-moat-rated Rayonier reported third-quarter results that featured multiple strategic announcements. Aside from disclosing third-quarter operating results, Rayonier announced its intention to sell $1 billion in assets over the next 18 months in an effort to enhance shareholder value. Additionally, the company announced that CFO Mark McHugh will be assuming the role of CEO effective April 1 as current CEO David Nunes is retiring after nine years in the role. While we like Rayonier’s new initiative, lumber markets remain constrained, and we expect that will last through much of next year. As such, we have maintained our $35 fair value estimate.