BlueLinx price target raised to $125 from $100 at Loop Capital

Loop Capital analyst Jeffrey Stevenson raised the firm’s price target on BlueLinx to $125 from $100 and keeps a Buy rating on the shares. The company will be lapping the last quarter of elevated wood commodity pricing inflation in Q4, and the firm expects BlueLinx to see profitable growth in 2024 after earnings returned to a more normalized level over the past year, the analyst tells investors in a research note. BlueLinx’s resilient specialty products gross margin results of about 18%-19% during a challenging residential backdrop have also given Loop increased confidence that segment margins have normalized above pre-pandemic levels, the firm added.