Louisiana-Pacific (NYSE:LPX) Upgraded to “Hold” at Zacks Investment Research

Zacks Investment Research upgraded shares of Louisiana-Pacific (NYSE:LPX) from a sell rating to a hold rating in a research note published on Friday morning, Zacks.com reports. They currently have $27.00 target price on the building manufacturing company’s stock.

According to Zacks, “Strong operational execution across the business, higher oriented strand board (“OSB”) pricing and ongoing development in value-added products are likely to drive Louisiana-Pacific’s performance in the coming quarters. Moreover, strength in housing markets is expected to drive demand for the company’s products. Focus on improving the business by growth of the Siding segment as well as enhancing its shareholders’ return bodes well. However, rising materials costs and expenses remain concerns for the company. Its earnings declined 79.4% year over year in the first quarter due to the softness in EWP sales, and higher cost and expenses. Shares of Louisiana-Pacific have underperformed its industry year to date. Earnings estimates have also been trending downward, depicting analysts’ concern surrounding the stock.”

Several other equities analysts have also recently weighed in on the stock. Bank of America upgraded shares of Louisiana-Pacific from a neutral rating to a buy rating and set a $24.75 price objective on the stock in a research report on Tuesday, April 30th. BMO Capital Markets upgraded shares of Louisiana-Pacific from a market perform rating to an outperform rating and boosted their price target for the company from $26.00 to $28.00 in a report on Friday, June 14th. Longbow Research upgraded shares of Louisiana-Pacific from a neutral rating to a buy rating and set a $32.00 price target on the stock in a report on Monday, May 20th. TD Securities lowered their price target on shares of Louisiana-Pacific from $27.00 to $26.00 and set a hold rating on the stock in a report on Wednesday, May 8th. Finally, Stephens upgraded shares of Louisiana-Pacific from an equal weight rating to an overweight rating and set a $32.00 price target on the stock in a report on Friday, April 5th. Three investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. The stock presently has a consensus rating of Buy and a consensus price target of $28.68.

NYSE LPX traded down $0.48 on Friday, hitting $25.23. 1,984,108 shares of the stock were exchanged, compared to its average volume of 1,107,149. Louisiana-Pacific has a 52-week low of $20.39 and a 52-week high of $32.16. The company has a debt-to-equity ratio of 0.28, a current ratio of 3.55 and a quick ratio of 2.25. The company has a market cap of $3.23 billion, a P/E ratio of 9.21, a price-to-earnings-growth ratio of 4.48 and a beta of 1.41. The business’s 50-day moving average price is $26.01.

Louisiana-Pacific (NYSE:LPX) last posted its quarterly earnings data on Tuesday, May 7th. The building manufacturing company reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.03). Louisiana-Pacific had a return on equity of 19.63% and a net margin of 12.16%. The firm had revenue of $582.00 million for the quarter, compared to analysts’ expectations of $601.49 million. During the same quarter in the previous year, the firm posted $0.63 earnings per share. The company’s revenue for the quarter was down 15.8% on a year-over-year basis. Equities analysts forecast that Louisiana-Pacific will post 1.17 EPS for the current fiscal year.

Several institutional investors have recently bought and sold shares of LPX. Coastal Capital Group Inc. purchased a new position in shares of Louisiana-Pacific during the 2nd quarter valued at $27,000. Valeo Financial Advisors LLC bought a new stake in Louisiana-Pacific in the first quarter worth $45,000. Baker Ellis Asset Management LLC bought a new stake in Louisiana-Pacific in the first quarter worth $134,000. TRUE Private Wealth Advisors bought a new stake in Louisiana-Pacific in the second quarter worth $166,000. Finally, Hollencrest Capital Management bought a new stake in Louisiana-Pacific in the first quarter worth $213,000. Institutional investors and hedge funds own 89.45% of the company’s stock.

About Louisiana-Pacific

Louisiana-Pacific Corporation, together with its subsidiaries, manufactures building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It also markets and sells products for use in light industrial and commercial construction applications. It operates through four segments: Siding; North America Oriented Strand Board (OSB); Engineered Wood Products; and South America.

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