Loop Capital raised the firm’s price target on BlueLinx to $135 from $125 and keeps a Buy rating on the shares. The company reported a Q4 earnings beat, driven by stronger-than-expected gross margin in both its specialty and structural products segments which offset double-digit YoY sales declines, the analyst tells investors in a research note. The firm remains positive on BlueLinx’s attractive valuation on a relative basis and focus on growing its higher margin specialty products business over the mid-term through a combination of organic growth and bolt-on M&A.
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Read More on BXC:
- BlueLinx sees specialty product gross margins at 18%-19% thus far in Q1
- BlueLinx reports Q4 EPS $2.94, consensus $1.67
- BlueLinx Announces Expansion of Distribution Partnership with Huber Engineered Woods
- BlueLinx announces expansion of distribution deal with Huber, no terms
- BlueLinx price target raised to $125 from $100 at Loop Capital
