UPDATE: DA Davidson Downgrades Louisiana-Pacific to Neutral
DA Davidson lowers its rating on Louisiana-Pacific (NYSE: LPX) to Neutral from Buy on unlikely profitability for the company in 2012.
DA Davidson says, "With a return to profitability not foreseen before 2014, book value and cash should continue to erode – prompting us to cut our target from $11.00 to $8.50 (1.2x projected 2012 book value) and our rating from Buy to NEUTRAL. For years now we have said that LP is more of a seasonal trading vehicle than a core holding, and we believe this will remain the case until the housing recovery is entrenched."
LPX closed at $8.26 a share on Tuesday.
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