Shares of BlueLinx Holdings Inc., a distributor of building products, dropped Friday as an analyst downgraded the company's stock following a recent run-up in share price.
Steve Chercover, an analyst with D.A. Davidson, said the firm was cutting its rating on BlueLinx shares to "Neutral" from "Buy." The analyst kept a price target of $8.
BlueLinx shares have more than doubled in price since hitting a 52-week low of $2.91 on July 11. On Friday, the stock fell 70 cents, or 9.7 percent, to $6.53.
"While we still like the BlueLinx story long term, the 6.6 percent upside potential to our target ... does not warrant a 'Buy' rating," Chercover wrote in a report to investors.
"We lack a sufficient catalyst to raise estimates or our target at this juncture," he added.
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