DA Davidson reiterates Buy rating on Boise Cascade stock with $100 target

Published 20/08/2025, 15:06
DA Davidson reiterates Buy rating on Boise Cascade stock with $100 target

Investing.com - DA Davidson has reiterated its Buy rating on Boise Cascade Company (NYSE:BCC) stock, maintaining a price target of $100.00. According to InvestingPro data, the stock appears undervalued at its current price of $87.23, trading at a P/E ratio of 12.8x.

The research firm noted that while engineered wood products (EWP) market conditions remain highly competitive, several factors could drive improved Wood Products margins after the third quarter of 2025. InvestingPro analysis shows the company maintains strong financial health with a GOOD overall rating, supported by liquid assets exceeding short-term obligations.

DA Davidson believes structural improvements made to the company’s operations and above-market growth opportunities for Boise Cascade’s Building Materials Distribution (BMD) division remain underappreciated by investors.

The firm views the stock as currently priced as if 2025 and 2026 earnings power approximates "mid-cycle" levels, suggesting potential upside.

DA Davidson continues to see a compelling risk/reward profile for Boise Cascade, citing the company’s strong cash position as providing additional support for the stock.

In other recent news, Boise Cascade reported its Q2 2025 earnings, missing forecasts on both earnings per share and revenue. The company’s EPS was $1.64, falling short of the expected $1.74, and revenue was $1.74 billion, slightly under the anticipated $1.75 billion. Despite these misses, the market responded positively. Additionally, DA Davidson has reiterated its Buy rating on Boise Cascade with a $100 price target, emphasizing the company’s strong Building Materials Distribution performance, which helped mitigate challenges in the Wood Products segment. On the other hand, BMO Capital has lowered its price target for Boise Cascade to $108 from $114, maintaining a Market Perform rating. They pointed to slowing single-family residential demand and increased competition in engineered wood products as factors potentially affecting the company’s second-half EBITDA performance. These developments provide investors with a varied perspective on Boise Cascade’s current situation.

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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