Street Calls of the Week
Investing.com - DA Davidson has reiterated its Buy rating and $100.00 price target on Boise Cascade Company (NYSE:BCC) despite the company’s reduced third-quarter outlook. The target aligns with the broader analyst consensus, with price targets ranging from $96 to $110. According to InvestingPro data, the stock appears slightly undervalued at its current price of $82.39.
The wood products manufacturer lowered its Q3 2025 EBITDA forecast by approximately $20 million, now projecting between $60 million and $80 million for the quarter, according to a late-quarter investor presentation. This represents a significant decline from the company’s trailing twelve-month EBITDA of $491.41 million.
The majority of the downward revision stems from the company’s Wood Products segment, which faces slightly weaker engineered wood products (EWP) pricing than previously modeled, along with lower volumes.
DA Davidson views this updated outlook as another warning sign for the broader building products sector, following similar reports from other companies in the space over the past month.
These industry reports collectively highlight increasing year-over-year demand pressures resulting from weak new residential construction activity, according to the research firm.
In other recent news, Boise Cascade Company has revised its third-quarter earnings guidance, projecting total company EBITDA to range between $60-80 million. This adjustment represents a reduction from the previous estimate of $80-100 million, falling short of analyst expectations. Following this update, Truist Securities lowered its price target for Boise Cascade to $96, while maintaining a Buy rating. Similarly, BMO Capital adjusted its price target to $100, citing a 22% decrease at the midpoint of the revised guidance, and maintained a Market Perform rating. DA Davidson, however, reiterated a Buy rating with a $100 price target, noting the company’s resilient Building Materials Distribution performance. The firm also mentioned potential margin improvements in the Wood Products segment after the third quarter of 2025. Additionally, BMO Capital reduced its price target from $114 to $108, pointing to challenges such as slowing single-family residential demand and increased competition in engineered wood products.
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