Boise Cascade Company (BCC) PT Raised to $160 at DA Davidson

DA Davidson analyst Kurt Yinger raised the price target on Boise Cascade Company (NYSE: BCC) to $160.00 (from $155.00) while maintaining a Buy rating.

The analyst comments "We continue to view BCC as an attractive value name in the building products space where the stability of EWP pricing, and by extension, sustainability of improved Wood Products earnings and margins remains relatively underappreciated at current levels. While we are expecting a relatively in-line 1Q24 report, we believe 1) the potential for increased share repurchase activity or a change in tone around being more aggressive with buybacks going forward, and 2) commentary around a stabilization in EWP prices would be viewed positively. We are bumping our PT from $155 to $160, representing 7.7x and 7.1x our respective 2024 and 2025 EBITDA forecasts and 14x and 13x our EPS estimates. Shares are currently trading at <6.5x our EBITDA forecasts and 11x-12x our EPS estimates with a balance sheet that continues to offer the potential for meaningful cash returns to shareholders (~$13/share of net cash at YE2023 with ~$9/share of FCF modeled for 2024)."

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