UPDATE: D.A. Davidson Downgrades Louisiana-Pacific Corporation to Underperform, Raises PT
In a report published Monday, D.A. Davidson & Co. downgraded its rating on Louisiana-Pacific Corporation (NYSE: LPX) from Neutral to Underperform, but raised its price target from $16.00 to $18.00.
D.A. Davidson noted, “Oriented Strand Board prices and Louisiana-Pacific shares have been on an absolute tear for the past three months, with the commodity spiking $180 (to Tuesday's Mid-week print of $400/msf) and LP shares surging from $12.50 at the end of September to a 52-week high above $21 on January 10. There is no question that the housing market is recovering and OSB is in short supply, but we don't believe the run in the commodity is sustainable long term and we are concerned that the shares are ahead of themselves. We are therefore taking the uncomfortable step of raising our estimates and target price while cutting our rating on the shares from Neutral to UNDERPERFORM.”
Louisiana-Pacific Corporation closed on Friday at $20.72.
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Tags: D.A. Davidson & Co.