Seeking Alpha
Editor's notes: Steep barriers to entry, secular growth trends, and vertical integration make Rayonier an outperformer. 37% upside over the next two years.

The Buy Thesis

While typically thought of as a timber company, Rayonier (RYN) is primarily a producer of cellulose specialty fibers. This aspect of its business provides four fundamental strengths, which I believe will drive substantial outperformance.

  1. Steep barriers to entry
  2. Market Share growth
  3. Industry growth
  4. Vertical Integration

We will explore each of these in more depth, but let us first consider the full range of Rayonier.

Scope of Rayonier

Rayonier owns over 2.7mm acres of timberland located throughout the US and New Zealand.

The positioning of its land along the east and west coast gives it ample access to ports, which is crucial to the truly global nature of its business. While it does...

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