Analyst Susan Maklari of Goldman Sachs maintained a Hold rating on Boise Cascade (BCC – Research Report), with a price target of $100.00.
Susan Maklari’s Hold rating on Boise Cascade (BCC) is influenced by several key factors.
On one hand, she is optimistic about Boise Cascade’s ability to navigate a decelerating operating environment, as evidenced in their third quarter performance. She acknowledges the company’s strategic initiatives such as organic investments across the BMD network, margin-accretive acquisitions like the recent BROSCO deal, and the expansion in Engineered Wood Products (EWP) which is expected to gradually shift volume towards more profitable categories. These moves, coupled with a flexible balance sheet, are believed to provide ample support for growth, M&A, and shareholder returns.
On the other hand, Maklari cites growing uncertainty in the housing market as a potential dampener for the stock’s performance in the near term. Despite a weaker housing backdrop, she notes that management expectations for EWP volumes to lower sequentially in the fourth quarter align with market conditions and seasonality, though they are still significantly up year-over-year. However, with an expected moderation in segment EBITDA margin and flat margins forecasted for next year, she maintains her Neutral rating on the stock.
According to TipRanks, Maklari is a 2-star analyst with an average return of 0.1% and a 43.58% success rate. Maklari covers the Real Estate sector, focusing on stocks such as KB Home, Lennar, and Weyerhaeuser.
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Boise Cascade (BCC) Company Description:
Boise Cascade Co. engages in the manufacture and distribution of vertically-integrated wood products and building materials. It operates through the Wood Products and Building Materials Distribution (BMD) segments. The Wood Products segment manufactures and sells engineered wood products, plywood, particleboard, studs and ponderosa pine lumber. The Building Materials Distribution segment distributes and sells broad line of building materials, including engineered wood products, oriented strand board, plywood, lumber, and general line items such as siding, metal products, insulation, roofing, and composite decking. The company was founded on October 29, 2004 and is headquartered in Boise, ID.
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