BlueLinx Holdings: To Recover Market Share Or Capture The Synergies, That's The Question


BXC's stock dropped 30% as management changed priorities. Market share recovery and delevering are the new priorities and synergies are delayed.
If BXC recovers market share and captures the synergies by 2021, the loss per share is $15 due to the time value of money.
If you believe that BXC will recover by 2021, then I recommend buying BXC with a target price of $50 (+150%).
If synergies and revenue recovery are delayed beyond 2021, the shares could be worth as low as $12.50, a 37% downside.

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