DA Davidson downgrades UFP Industries on diminished visibility

DA Davidson downgraded UFP Industries to Neutral from Buy with a price target of $106, down from $122. The company reported a “modestly weaker than expected” Q3 performance with a “sober tone” of the earnings call, the analyst tells investors in a research note. The firm sees weak organic volume trends and diminished near-term visibility for UFP. While the company’s robust net cash position offers capital deployment optionality, a thin acquisition pipeline diminishes the potential for that to be a near-term catalyst, says Davidson.