UPDATE: BlueLinx (BXC) PT Raised to $65 but Craig-Hallum Cautions Investors Forward Estimates May Still Be Too Low
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Craig-Hallum analyst Greg Palm raised the price target on BlueLinx (NYSE: BXC) to $65.00 (from $62.00) after commodity inflation has intensified over the last six weeks, making prior estimates too conservative. Framing lumber is up slightly and OSB prices have
increased significantly and prior Q1 estimates had assumed seasonal softening which has failed to happen to date.
The analyst maintained a Buy rating noting that forward estimates may still be too low, stating "we have increased our revenue assumptions based on higher ASPs and have raised our margin assumptions as well. While the current situation makes modeling tricky, we continue to take a conservative approach to commodity ASPs. As a result, any sustained inflation will make our forward estimates prove materially conservative."
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