AI underweights weigh on large-cap funds performance says Goldman
On Thursday, DA Davidson analyst Kurt Yinger adjusted the price target for BlueLinx (NYSE:BXC) to $119.00, decreasing from the previous $137.00, while sustaining a Buy rating on the shares. The revision followed a trading session where BlueLinx shares fell approximately 8% despite the company reporting better-than-expected earnings for both revenue and profit in the fourth quarter of 2024. According to InvestingPro data, the stock is currently trading at $89.85, suggesting potential upside based on analyst targets ranging from $118 to $135.
Yinger’s commentary shed light on the initial market reaction, attributing the decline in share value to initial uncertainty over the company’s quarter-to-date daily sales. However, this concern was later alleviated as further details emerged, indicating a positive year-over-year volume trend through mid-February. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 4.85, indicating ample liquidity to meet short-term obligations.
Despite the reduction in the price target, the analyst’s outlook for BlueLinx remains optimistic. Yinger’s projections for 2025 have been adjusted to account for more conservative lumber pricing expectations and an increase in selling, general, and administrative expenses. Nevertheless, he believes that the current profitability levels may represent a low point, barring any significant downturn in the broader housing market.
The analyst also highlighted BlueLinx’s substantial potential for cash deployment, which could provide additional support to the company’s financial position. With these factors in mind, the Buy rating was reaffirmed, even as the price target was revised downward to reflect the updated forecasts.
In other recent news, DA Davidson analyst Kurt Yinger reaffirmed a Buy rating on BlueLinx Holdings Inc. with a price target of $137. This positive outlook suggests confidence in BlueLinx’s potential for growth. In contrast, e.l.f. Beauty (NYSE:ELF), Inc. has seen a slowdown in U.S. tracked channel point of sale (POS), with growth tapering to +0.1% year-over-year for the March quarter-to-date. Recent sales figures show a -5.8% drop in POS for e.l.f. Beauty in the most recent week, with sales declining year-over-year in four of the last six weeks.
Despite these challenges, e.l.f. Beauty’s fourth-quarter fiscal year 2025 guidance for sales ranging between -1% to +3% year-over-year appears achievable. However, there is concern regarding its fiscal year 2026 guidance, which might fall short of market expectations for sales growth of +11% and EBITDA growth of +13%. DA Davidson has set a price target of $80 for e.l.f. Beauty, based on a 15 times multiple of the firm’s estimated 2026 EBITDA of $314 million. Investors are closely monitoring these developments, as they could impact e.l.f. Beauty’s stock performance in the near term.
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