BlueLinx (BXC) PT Lowered to $55 at DA Davidson amid cautious view of NT demand

DA Davidson analyst Kurt Yinger lowered the price target on BlueLinx (NYSE: BXC) to $55.00 (from $68.00) while maintaining a Neutral rating.

The analyst commented, "Results include pockets of positivity, including volume growth in both Structural/Specialty categories amidst a declining market demand backdrop, as well as Specialty margins that remain around 18%. As such, reinvestment around product/channel growth strategies appear to be bearing fruit, though come at the expense of overall profitability with EBITDA margins contracting back to 2019 levels. An inflection in new residential construction activity paired with strengthening commodity prices (back to levels that support normalized manufacturer profitability) could drive substantial upside for the stock, potentially compounded by a more aggressive approach to share repurchases. That said, with our generally cautious view around NT demand we view risk/reward as balanced at this stage, minimal buyback activity over 2H25 also failing to provide incremental confidence. Alongside the reduction in our forecasts, we are lowering our PT from $68 to $55, which represents 8.0x and 6.2x our 2026 and 2027 EBITDA forecasts, including real property leases in our EV calculation."

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