| Thursday | ||||
Boise Cascade is down… Boise Cascade is down -5.7%, or -$3.58 to $58.83. | ||||
BofA analyst George… BofA analyst George Staphos downgraded Boise Cascade to Neutral from Buy with a price target of $71, down from $95, driven by the firm's cut to its housing forecasts and the playing out of what he had previously identified as the catalysts in the wood products space. The firm's analyst on homebuilding sees a weakened environment since early June given mortgage rates, affordability and other factors, which is in keeping with the view of the BofA economics team for a slowing housing sector, noted Staphos. | ||||
BofA analyst George… BofA analyst George Staphos downgraded Boise Cascade to Neutral from Buy with a $71 price target. | ||||
| Over a week ago | ||||
Boise Cascade Company… Boise Cascade Company announced that it has reached an agreement to acquire Coastal Plywood Company, including its two manufacturing locations, from Coastal Forest Resources Company for $512M, subject to certain closing adjustments. The Company currently plans to fund the transaction and closing-related expenses from its existing cash balances. "This acquisition incrementally expands our veneer capacity in support of our customers," said Nate Jorgensen, CEO, Boise Cascade. "Near term, it provides us the ability to optimize our existing engineered wood products asset base. Longer term, we are excited to fully integrate this strategic venture and we intend to invest $50 million into our Southeast operations over a three-year period to further our EWP production capacity." The scope of this transaction does not include Coastal's parent company or timberlands assets. Closing of the acquisition is expected in the third quarter of 2022, subject to customary closing conditions, including receipt of antitrust approval under the Hart-Scott-Rodino Act of 1976, as amended. | ||||
| Over a month ago | ||||
As previously reported,… As previously reported, Benchmark analyst Reuben Garner downgraded Boise Cascade to Hold from Buy as the stock approaches his previous $82 price target. Late last week, Boise posted "standout results yet again" and his downgraded "certainly wasn't due to any disappointment in the quarter/outlook" as he is raising his EPS estimates for this year and next, Garner tells investors. However, the stock is the strongest performer in its group this year with a year-to-date advance of nearly 15% and he notes that commodity price pressures and/or broader housing concerns may push shares lower through the summer. | ||||
Benchmark analyst Reuben… Benchmark analyst Reuben Garner downgraded Boise Cascade to Hold from Buy. | |
Reports Q1 revenue $2.3B,… Reports Q1 revenue $2.3B, consensus $2.19B. "Both businesses delivered tremendous financial results in the first quarter. I am very thankful for our associates and their continued focus on providing exceptional service to our customer and supplier partners," commented Nate Jorgensen, CEO. "As we move into second quarter, we continue to experience steady demand across product lines and strong pricing on engineered wood and general line products. Our team has also done a great job of mitigating exposure to commodity price declines experienced early in the quarter. With the strength of our balance sheet we are intent on deploying capital to create shareholder value, including execution of our growth strategies." |
| Over a quarter ago | ||||
DA Davidson analyst Kurt… DA Davidson analyst Kurt Yinger upgraded Boise Cascade to Buy from Neutral with a price target of $82, up from $80. The analyst states that the selloff in the stock in spite of the strong report and outlook feels "eerily similar" to what transpired exactly one year ago. As was the case then, the current prices should prove to be a compelling entry-point for investors, Yinger tells investors in a research note. | ||||
DA Davidson analyst Kurt… DA Davidson analyst Kurt Yinger upgraded Boise Cascade to Buy from Neutral with a price target of $82, up from $80. | ||||
Boise Cascade said:… Boise Cascade said: "Economic uncertainty due to the ongoing COVID-19 pandemic continues. However, mortgage rate levels, continuation of work-from-home practices by many in the economy, and demographics in the U.S. have created a favorable demand environment for new residential construction, which we expect to continue in 2022... As a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices and rising input costs. Our distribution business purchases and sells a broad mix of commodity products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments expose us to declines in sales and profitability. Our 2021 results were favorably impacted by historically high commodity wood products pricing, as well as rising prices for EWP and general line products. Composite lumber and panel prices were very volatile throughout 2021 with rapidly rising prices in second quarter, sharp price declines in third quarter, and prices steadily increasing again during fourth quarter. As we enter 2022, commodity wood products pricing continues to be above historical averages as strong demand and capacity constraints continue to create supply/demand imbalances in the marketplace. We expect future commodity product pricing and commodity input costs to be volatile in response to capacity restoration and industry operating rates, the impact of the ongoing COVID-19 pandemic on residential construction, net import and export activity, transportation constraints or disruptions, inventory levels in various distribution channels, and seasonal demand patterns. EWP and general line products have historically experienced limited price volatility, and we expect the firm pricing environment to continue in 2022." | ||||
