DA Davidson Keeps Buy Rating on Boise Cascade (BCC) Despite Market Challenges

On Friday, May 30, DA Davidson maintained a “Buy” rating on Boise Cascade Company (NYSE:BCC) with a price target of $115. This decision came after recent investor meetings with the company’s senior management. DA Davidson analysts expressed a positive view on Boise Cascade Company (NYSE:BCC) despite some market challenges, especially with the prices falling in Engineered Wood Products (EWP). The firm’s analysts still believe the stock offers a good balance of risk and reward.

During the investor meetings, discussions focused on various aspects of the company’s business, including the competition in the EWP market, how Boise Cascade Company (NYSE:BCC) stands out within the two-step distribution model, sustainable margin levels, and plans for using capital effectively. The recent merger between James Hardie and AZEK and its potential effects on the industry were also discussed.

Aerial shot of a building site stocked with lumber and other building materials.

Although the current market conditions have slowed single-family housing activity and put pressure on EWP pricing, DA Davidson’s view on Boise Cascade Company (NYSE:BCC) remains the same. While the firm’s analysts acknowledge that these factors are significant, they believe these do not reduce the overall positive investment potential.

Boise Cascade Company (NYSE:BCC) is an American producer of engineered wood products and plywood. It is also the leading wholesale distributor of building products in the US.

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Disclosure: None.