UPDATE: D.A. Davidson Initiates Boise Cascade with Underperform on Expectation of Housing Recovery

In a report published Monday, D.A. Davidson analyst Steven Chercover initiated coverage on Boise Cascade Co.

with an Underperform rating and $28.00 price target. In the report, Chercover noted, “We believe most housing-related equities presently discount a full blown housing recovery – with starts at or around 1.5 million by 2015/2016, and we believe Boise Cascade is no exception. We are establishing our initial target on Boise Cascade ‘Version 2.0' at $28, which represents a 7x multiple of our 2014 EBITDA estimate of $175 million. With Boise Cascade shares trading north of $32 (55% above the filing price of $21), we are initiating coverage with an UNDERPERFORM rating.” Boise Cascade Co. closed on Friday at $32.63.