Market Overview

UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Louisiana-Pacific Corporation

Related LPX
After Louisiana-Pacific's Wild Week, What Are Investors To Do With Building Products?
Top Performing Industries For December 8, 2014
Home Improvement Stocks Tumble (Fox Business)

In a report published Wednesday, BMO Capital Markets reiterated its Market Perform rating on Louisiana-Pacific Corporation (NYSE: LPX), and raised its price target from $18.00 to $24.00.

BMO Capital Markets noted, “In 2012, U.S. housing starts surged an estimated 26.4% to 0.77 mm. According to Random Lengths, Southern OSB prices are $380/000 sf, the highest level since 2004. We estimate the installed operating rate at about 90%. There are five OSB mills totalling 3.3 billion sf (12% supply) starting up during 2013. Based on our estimated 0.9 mm housing starts, we expect operating rates to fall back to the 85% range. Our panel price forecast is $280/000 sf for 2013 and $265/000 sf for 2014. The increase in earnings is owing to 20% higher sales volumes. LPX is starting up a total 1.13 billion sf at two mills. We have assumed a gradual start-up.”

Louisiana-Pacific Corporation closed on Tuesday at $20.95.

Latest Ratings for LPX

DateFirmActionFromTo
Dec 2014Longbow ResearchDowngradesBuyNeutral
Dec 2014DA DavidsonDowngradesBuyNeutral
Nov 2014RBC CapitalDowngradesSector PerformUnderperform

View More Analyst Ratings for LPX
View the Latest Analyst Ratings

Posted-In: BMO Capital MarketsAnalyst Color Price Target Analyst Ratings

 

Related Articles (LPX)

Around the Web, We're Loving...

Get Benzinga's Newsletters