Boise Cascade Shares Surpass Analyst Target: What’s Next?

In the latest market activity, Boise Cascade Co. (Symbol: BCC) has seen its shares rise past the average analyst 12-month target price of $142.33, trading at $143.14 per share. When a stock hits an analyst’s target, the analyst typically faces two choices: either downgrade based on valuation or raise the target price. Reactions may vary based on the company’s recent performance and developments that may justify a higher stock price.

Currently, there are six analysts covering Boise Cascade Co. that contribute to the average target price. However, this average can be misleading. Some analysts project a lower target, with one suggesting a price of $122.00, while another anticipates a much higher target of $161.00. The average has a standard deviation of $16.872, indicating some divergence in expectations among analysts.

The reason for focusing on the average target price lies in the concept of “wisdom of crowds,” which combines the insights of various analysts rather than relying solely on one opinion. With BCC now above the average target price of $142.33 per share, investors are prompted to reassess the company. Is this merely a stop on the way to an even higher target, or has the stock become overvalued, suggesting it’s time for some profit-taking? Below, a table outlines the current ratings from analysts covering Boise Cascade Co.:

The average rating reflects a scale of 1 to 5, where 1 indicates a Strong Buy and 5 denotes a Strong Sell. This article features data provided by Zacks Investment Research through Quandl.com, and investors can access the latest Zacks research report on BCC for free.

10 ETFs With Most Upside To Analyst Targets »

Also see:

• TFX Options Chain

• IVE Videos

• Invesco Average Annual Return

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.