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UPDATE: Deutsche Bank Downgrades Louisiana-Pacific to Hold; Current Valuation Fair

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Deutsche Bank lowered its rating on Louisiana-Pacific (NYSE: LPX) from Buy to Hold but raised its price target from $12 to $14.

Deutsche Bank said, "Based on our analysis of probable mid-cycle EBITDA ($330-340MM) and a 6.5X multiple, we believe that $14 represents reasonable “fair value”. LPX is NA's largest producer of OSB with ~20% mkt share. It's possible to make an argument for a higher valuation based on more disciplined behavior by OSB producers. However, given the disappointing financial record of the OSB industry (including LPX) over time, we believe that investors should take such arguments with a grain of salt. At current levels, we think LPX stock is fairly valued."

Louisiana-Pacific closed at $13.28 on Wednesday.

Latest Ratings for LPX

DateFirmActionFromTo
Sep 2014BMO CapitalInitiates Coverage onOutperform
Sep 2014BMO CapitalInitiates Coverage onOutperform
Jul 2014RBC CapitalDowngradesOutperformSector Perform

View More Analyst Ratings for LPX
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Posted-In: Deutsche BankAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

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