DA Davidson maintains BlueLinx buy rating, $137 target

Published 19/02/2025, 16:22
DA Davidson maintains BlueLinx buy rating, $137 target

On Wednesday, DA Davidson analyst Kurt Yinger reaffirmed a Buy rating on BlueLinx Holdings Inc. (NYSE: BXC) with a price target of $137.00. Currently trading at $90.37, near its 52-week low of $87.67, InvestingPro analysis indicates the stock is undervalued. The company maintains a strong financial position with a current ratio of 4.85, demonstrating excellent liquidity. Yinger’s analysis observed a slowdown in U.S. tracked channel point of sale (POS) for NEUTRAL-rated e.l.f. Beauty, Inc. (NYSE: NYSE:ELF), with growth tapering to +0.1% year-over-year for the March quarter-to-date from a previous +2.1%, despite comparably easier previous year figures. This deceleration was highlighted by a -5.8% drop in POS in the most recent week, with sales declining year-over-year in four of the last six weeks.

According to Yinger, e.l.f. Beauty’s fourth-quarter fiscal year 2025 guidance for sales ranging between -1% to +3% year-over-year appears to be within reach. However, there is a concern that the fiscal year 2026 guidance could fall short of the current market expectations, which anticipate a sales growth of +11% and EBITDA growth of +13%.

The report also noted that e.l.f. Beauty’s recent product launches seem to be more of an iteration on existing items rather than groundbreaking new introductions. The price target for e.l.f. Beauty set by DA Davidson, which stands at $80, is based on a 15 times multiple of the firm’s calendar year 2026 estimated EBITDA of $314 million. Meanwhile, BlueLinx Holdings reports solid fundamentals with $2.95 billion in revenue and an EBITDA of $124.33 million. InvestingPro subscribers can access 10 additional investment tips and a comprehensive Pro Research Report for deeper analysis of BXC’s potential.

Investors are watching closely as these developments could impact e.l.f. Beauty’s stock performance in the near term. BlueLinx Holdings, on the other hand, retains a positive outlook from DA Davidson, with the maintained Buy rating and $137 price target suggesting confidence in the company’s potential for growth. This aligns with the unanimous Buy rating from analysts and BlueLinx’s "FAIR" overall financial health score from InvestingPro.

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

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