DA Davidson lowers Boise Cascade stock price target on weak pricing

Published 18/07/2025, 15:20
DA Davidson lowers Boise Cascade stock price target on weak pricing

Investing.com - DA Davidson has lowered its price target on Boise Cascade Company (NYSE:BCC) to $100.00 from $115.00 while maintaining a Buy rating on the stock. The company, currently trading at $85.21, is near its 52-week low of $83.60, though InvestingPro analysis suggests the stock is undervalued.

The price target reduction reflects weaker-than-expected second-quarter 2025 commodity pricing and deteriorating engineered wood product (EWP) prices, according to the research firm’s Friday report.

DA Davidson has adjusted its estimates below consensus based on recent channel checks that indicate "unabated EWP price deterioration" and moderated assumptions about the forward market conditions.

Despite the challenging near-term outlook, the firm maintained its Buy rating, citing Boise Cascade’s "undemanding valuation" and "strong competitive positioning" in the market.

The research firm also noted the potential for "another healthy special dividend providing downside support" for the building materials company’s stock.

In other recent news, Boise Cascade Company reported its first-quarter 2025 earnings, revealing 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. Despite the revenue beat, the company’s net income dropped significantly compared to the previous year, reflecting ongoing challenges in the market. Truist Securities recently 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. Meanwhile, DA Davidson maintained a Buy rating with a revised price target of $115.00, expressing optimism about Boise Cascade’s strategic positioning and potential improvements in commodity-related segments. The company is also navigating a complex market environment with modernization projects and strategic capital deployment. Despite these challenges, Boise Cascade’s Building Materials Distribution segment showed stable results, supported by strong free cash flow and a solid net cash position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.