UPDATE: Deutsche Bank Upgrades Louisiana-Pacific Corporation to Buy; Housing Demand Pickup
Deutsche Bank raises its rating on Louisiana-Pacific Corporation (NYSE: LPX) to Buy from Hold and raises its price target from $10 to $12.
Deutsche Bank says, "Housing demand is showing some signs of pick-up after ~5 yrs of anemic US housing starts. With ~9bsf of OSB capacity shuttered over the past 5-6 years & the entire supply chain constrained, we think even a relatively modest cyclical recovery in housing demand could significantly boost LPX's earnings. LPX is the largest producer of OSB in NA with ~20-21% market share. Today's announcement of debt refinancing could boost annual EPS by ~0.11-0.12/share."
LPX closed at $9.49 on Monday.
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