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Investing.com - DA Davidson has reiterated its Buy rating on Boise Cascade Company (NYSE:BCC) with a $100.00 price target, citing better-than-expected recent results. The target aligns with InvestingPro’s Fair Value analysis, which suggests the stock is currently undervalued, trading at $83.67 near its 52-week low of $80.30.
The firm highlighted Boise Cascade’s resilient Building Materials Distribution (BMD) performance, which helped offset transitory factors that drove negative cost variances in the company’s Wood Products segment.
DA Davidson lowered its estimates to account for spillover cost dynamics affecting the Wood Products outlook for the third quarter of 2025, but still sees a path for segment EBITDA margins to improve toward 10% in 2026.
The firm maintained its $100 price target, which represents 8 times the company’s estimated 2026 EBITDA.
DA Davidson noted that Boise Cascade’s undemanding valuation, strong cash position, and stability in its Building Materials Distribution business offer downside protection in what it described as a challenging single-family housing environment.
In other recent news, Boise Cascade reported its Q2 2025 financial results, which showed a miss on both earnings per share (EPS) and revenue expectations. The company’s EPS was $1.64, falling short of the anticipated $1.74. Additionally, revenue was reported at $1.74 billion, slightly below the forecasted $1.75 billion. Despite these shortfalls, the market responded positively. This reaction is notable as it contrasts with the usual market behavior following earnings misses. Boise Cascade’s recent developments are attracting attention from investors and analysts alike. The company’s financial performance continues to be a subject of interest, especially in light of these recent results.
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