BlueLinx price target lowered to $119 from $137 at DA Davidson

DA Davidson lowered the firm’s price target on BlueLinx (BXC) to $119 from $137 but keeps a Buy rating on the shares. The stock’s post-earnings weakness was due in part to consternation/confusion over quarter-to-date daily sales commentary, which when clarified, pointed to positive y/y volumes through mid-February, the analyst tells investors in a research note. The firm is reducing its estimates to reflect the more moderate lumber pricing assumptions and higher SG&A modeled, but also continues to view current profitability levels for BlueLinx as “trough-like” barring a meaningful leg down in overall housing activity.