Boise Cascade stock price target lowered to $96 at Truist on weaker guidance

Published 17/09/2025, 13:50
Boise Cascade stock price target lowered to $96 at Truist on weaker guidance

Investing.com - Truist Securities has lowered its price target on Boise Cascade Company (NYSE:BCC) to $96.00 from $101.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week low of $80.01 and appears undervalued based on comprehensive Fair Value analysis.

The price target reduction follows Boise Cascade’s updated third-quarter guidance released Tuesday, which now projects total company EBITDA of approximately $60-80 million, down from previous estimates of $80-100 million and below analyst expectations of approximately $89-92 million. InvestingPro data reveals that three analysts have recently revised their earnings estimates downward for the upcoming period.

The building materials company attributed the weaker outlook primarily to softer performance in its Wood Products segment, citing lower engineered wood product (EWP) volumes than expected as builders have moderated their single-family starts pace. The company also faced challenges working through elevated EWP inventory and experienced weaker plywood prices relative to expectations.

Boise Cascade’s Building Materials Distribution segment has been incrementally pressured by weaker commodity prices and slower sales per day, according to the company’s investor presentation. Following the guidance update, BCC shares declined 2.9% compared to the S&P 500’s 0.1% drop.

Despite the near-term challenges, Truist Securities noted that Boise Cascade has been actively repurchasing shares this year, buying back approximately 954,400 shares (about 2.4% of shares outstanding) through July, and suggested the current share price weakness could provide further repurchase opportunities. The company maintains a strong financial position with a current ratio of 2.96 and operates with a moderate debt level, according to InvestingPro analysis, which offers 7 additional key insights about BCC’s financial health in its comprehensive Pro Research Report.

In other recent news, Boise Cascade reported its second-quarter 2025 earnings, which fell short of expectations. The company’s earnings per share (EPS) were $1.64, missing the forecast of $1.74, and revenue was $1.74 billion, slightly below the anticipated $1.75 billion. Despite these misses, analysts from DA Davidson maintained their Buy rating on the stock with a $100 price target, noting the company’s strong performance in its Building Materials Distribution segment. BMO Capital, however, adjusted its price target for Boise Cascade to $100 from a previous $108, maintaining a Market Perform rating. This adjustment followed the company’s downward revision of its third-quarter EBITDA guidance to $60-80 million. BMO Capital also cited challenges such as slowing single-family residential demand and increased competition in the engineered wood products market. DA Davidson, on the other hand, pointed to potential margin improvements in the Wood Products segment after the third quarter of 2025. These developments highlight the mixed analyst perspectives on Boise Cascade’s future performance.

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