George Staphos, an analyst from Bank of America Securities, reiterated the Sell rating on Boise Cascade (BCC – Research Report). The associated price target is $122.00.
George Staphos has given his Sell rating due to a combination of factors impacting Boise Cascade’s performance. The company is facing macroeconomic challenges, particularly linked to interest-rate risks that could adversely affect their market. Additionally, there is an anticipated decline in the company’s earnings as indicated by the reduction in EBITDA estimates for the first quarter, which are expected to fall below the figures reported in the fourth quarter.
Furthermore, there has been a notable decline in stock prices for companies associated with wood and housing, including Boise Cascade, which reflects a weakening sentiment in the sector. The unexpected price drops in engineered wood products and a decrease in sales per day within the Building Materials Distribution segment are contributing to the cautious outlook. Although Boise Cascade is making strategic long-term investments, the current market conditions necessitate a reduction in estimates and a lowered price objective, justifying the Sell rating.
BCC’s price has also changed moderately for the past six months – from $132.050 to $107.000, which is a -18.97% drop .
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