Loop Capital has revised its price target for BlueLinx Holdings Inc. (BXC, Financial), lowering it from $120 to $115. Despite the adjustment, the investment firm maintains a Buy rating on the stock. This update comes as part of a more extensive analysis of the building products sector.
The price target reduction reflects several industry challenges, including unfavorable weather conditions experienced year-to-date and deflationary pressures in categories like engineered wood products (EWP). Additionally, there is a cautious outlook on the recovery of residential demand, affected by affordability issues and broader economic uncertainties.
However, Loop Capital remains optimistic about BlueLinx's long-term potential. The firm believes that companies like BlueLinx, with significant residential exposure, are strategically positioned to benefit once market conditions improve. The expectation is that after enduring 1-2 years of deflationary trends, earnings will stabilize, aided by sustainable margins that have been maintained above pre-pandemic levels.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for BlueLinx Holdings Inc (BXC, Financial) is $123.00 with a high estimate of $135.00 and a low estimate of $118.00. The average target implies an upside of 71.91% from the current price of $71.55. More detailed estimate data can be found on the BlueLinx Holdings Inc (BXC) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, BlueLinx Holdings Inc's (BXC, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BlueLinx Holdings Inc (BXC, Financial) in one year is $79.71, suggesting a upside of 11.4% from the current price of $71.55. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BlueLinx Holdings Inc (BXC) Summary page.
