Boise Cascade stock price target lowered to $95 at DA Davidson on EWP pressure

Investing.com - DA Davidson lowered its price target on Boise Cascade Company (NYSE:BCC) to $95.00 from $100.00 on Friday, while maintaining a Buy rating on the building materials company. The stock, currently trading at $71.97, sits near its 52-week low of $70.00, with InvestingPro analysis indicating the shares are undervalued.

The firm cited ongoing engineered wood products (EWP) price pressure extending into the fourth quarter of 2025 as the primary reason for the adjustment.

DA Davidson noted that if competition continues through the first quarter of 2026 with low-single-digit to mid-single-digit quarter-over-quarter price declines, most of the EWP industry would likely reach or fall below cash production costs, potentially triggering a supply response.

Despite the disappointing EWP price trends, the research firm believes Boise Cascade shares are "significantly undervalued" at current levels.

According to DA Davidson’s analysis, the company’s Building Materials Distribution (BMD) business is effectively trading at 7.5x-9x EBITDA with "zero ascribed value" for the Wood Products segment.

In other recent news, Boise Cascade Company has adjusted its third-quarter 2025 EBITDA guidance to a range of $60 million to $80 million, down from earlier estimates of $80 million to $100 million. This revision has led to multiple analyst firms adjusting their price targets for the company. Truist Securities has lowered its price target to $96 from $101, while maintaining a Buy rating. BMO Capital has also reduced its price target to $100 from $108 and maintains a Market Perform rating. Despite these adjustments, DA Davidson has reiterated its Buy rating and kept its price target at $100, citing potential improvements in Wood Products margins after Q3 2025. Additionally, Boise Cascade and James Hardie Building Products have expanded their distribution partnership to include AZEK Exteriors and TimberTech Decking and Railing products in select East Coast markets. This marks the first time TimberTech composite decking will be available in the Pittsburgh, Baltimore, and Washington, D.C. regions through Boise Cascade. These developments highlight significant shifts in Boise Cascade’s strategic and financial outlook.

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