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Investing.com - Truist Securities lowered its price target on Boise Cascade Company (NYSE:BCC) to $106.00 from $114.00 on Tuesday while maintaining a Buy rating on the stock. The company, currently trading at a P/E ratio of 11.2x with a notable 6.49% dividend yield, has seen its stock decline 24% year-to-date. InvestingPro analysis suggests the stock is currently undervalued.
The price target reduction follows indications that the second quarter has been "somewhat softer" than company expectations, according to Truist’s research note.
The firm cited weakness in the housing market as a contributing factor to Boise Cascade’s underperformance relative to its guidance.
Truist noted that investors are currently "ascribing minimal value" to the company’s Wood Products segment due to repeated earnings misses and lower revised guidance.
The research firm also mentioned investor caution regarding the prospects for a housing market turnaround in the near term, though Truist maintained its overall positive outlook on the stock with the Buy rating.
In other recent news, Boise Cascade Company reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.06, which missed the analyst forecast of $1.47. However, the company exceeded revenue expectations with $1.54 billion, surpassing the forecasted $1.53 billion. Despite the earnings miss, the Building Materials Distribution segment showed strong sales performance. DA Davidson maintained its Buy rating for Boise Cascade, although it revised the stock price target from $125.00 to $115.00, citing a softer first-quarter performance but noting more positive trends for the future. The analyst firm highlighted challenges such as the pricing of Engineered Wood Products (EWP) and the impact of a modernization project at the Oakdale facility. Boise Cascade’s free cash flow and strong net cash position are expected to support shareholder returns, with capital expenditures projected between $220 million and $240 million for the year. The company remains cautious about the housing market, anticipating a flat to mid-single-digit decline in 2025. Despite these challenges, DA Davidson’s continued Buy rating reflects confidence in Boise Cascade’s potential value proposition.
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