Boise Cascade: DA Davidson maintains Buy rating, lowers PT to $100 from $115.

Boise Cascade: DA Davidson maintains Buy rating, lowers PT to $100 from $115.

DA Davidson has revised its price target for Boise Cascade Company (NYSE: BCC) to $100.00, down from $115.00, while maintaining a Buy rating on the stock. The research firm cited weaker-than-expected commodity pricing and deteriorating engineered wood product (EWP) prices as reasons for the adjustment. Despite the near-term challenges, DA Davidson remains optimistic about Boise Cascade’s strategic positioning and potential improvements in commodity-related segments [1].

Boise Cascade, currently trading at $85.21, is near its 52-week low of $83.60, but InvestingPro analysis suggests the stock is undervalued. The company recently reported its first-quarter 2025 earnings, with an earnings per share (EPS) of $1.06, which fell short of the forecasted $1.47. However, the company managed to exceed revenue expectations, posting $1.54 billion against a forecast of $1.53 billion. Truist Securities also lowered its price target for Boise Cascade to $106.00 from $114.00, citing a softer-than-expected second quarter and a weak housing market impacting the company’s performance [1].

DA Davidson noted the potential for another healthy special dividend providing downside support for the stock. The company is navigating a complex market environment with modernization projects and strategic capital deployment. Despite these challenges, the Building Materials Distribution segment showed stable results, supported by strong free cash flow and a solid net cash position [1].

References:
[1] https://www.investing.com/news/analyst-ratings/da-davidson-lowers-boise-cascade-stock-price-target-on-weak-pricing-93CH-4142083