Rayonier's CEO Is Jumping Ship To Its Spin-Off - Should You?
- Six Rayonier board members, including its CEO, are joining its spin-off indicating key insiders believe the spin-off may have much better prospects than its parent.
- Rayonier’s spin-off is a high quality business with a much higher return on capital then its post-separation parent.
- Rayonier’s share price has outperformed its nearest peers by nearly 15% year-to-date indicating the market has already priced in a lot of the potential upside.
- However, post-separation, we estimate RYAM presents an attractive investment opportunity below USD45 per RYAM share. Currently, RYAM’s “when issued” share price is USD40.65 implying a further 10% plus upside.