Top SumZero Analyst Sees 76% Upside on Stock That Just Doubled
(Bloomberg) -- The highest-ranked North America analyst on the investment network SumZero is doubling down on a huge winner.
BlueLinx Holdings Inc. is poised to keep climbing even after the building-products distributor doubled on a $413 million acquisition of peer Cedar Creek Monday morning, according to Half Moon Capital LLC founder Eric DeLamarter.
DeLamarter first posted research on SumZero in late November that featured a base case price target of $20. In a note published today, he said shares may now climb to $60, implying upside of about 76% on what he calls a "phenomenal deal."
In an interview, DeLamarter said he initiated his long position in the October follow-up offering that priced at $7.
Half Moon’s assets under management now stand at $33 million, according to DeLamarter, with BlueLinx accounting for 9 percent of the fund’s portfolio.
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