Ahead Of The Bell: Plum Creek Timber Upgraded

NEW YORK (AP) — Shares of Plum Creek Timber Co., a real estate investment trust, have declined enough to warrant an improved rating on the shares, an analyst said Friday, upgrading the stock to "Neutral."

Credit Suisse analyst C.A. Dillon III said that since Plum Creek reported its second-quarter results after the market closed July 27, its shares have declined by 10 percent while the S&P 500 has increased by more than 6 percent.

Also, since reaching $60 per share less than a year ago, Plum Creek has fallen by more than 50 percent, he said.

"With the shares just below our $30 target price, we no longer see PCL as overvalued and therefore upgrade our rating to 'Neutral' from 'Underperform,'" Dillon wrote in a client note.

Shares closed 13 cents higher Thursday to $29.92.

The analyst also said that Plum Creek's ability to sell non-strategic forest land should support its $1.68 dividend.