Louisiana-Pacific (NYSE:LPX) Stock Price Target Lowered at The Goldman Sachs Group

Key Points

• Goldman Sachs lowered Louisiana-Pacific’s price target from $74 to $64 and maintained a “sell” rating, implying roughly 3% downside from the stock’s $65.95 price.
• Analyst opinion remains broadly positive despite Goldman’s stance: 12 analysts rate the stock “buy,” two rate it “hold,” and one rates it “sell,” producing a consensus “moderate buy” rating and average $92.50 target.
• Louisiana-Pacific recently missed quarterly earnings expectations, reporting $0.40 EPS versus $0.56 expected, while revenue declined 12.1% year over year to $664 million. Institutional investors own approximately 94.73% of the company.

Louisiana-Pacific (NYSE:LPX - Get Free Report) had its price target cut by stock analysts at The Goldman Sachs Group from $74.00 to $64.00 in a note issued to investors on Monday, Benzinga reports. The brokerage currently has a "sell" rating on the building manufacturing company's stock. The Goldman Sachs Group's price target points to a potential downside of 2.95% from the stock's current price.

Several other analysts also recently issued reports on LPX. Bank of America boosted their price objective on Louisiana-Pacific from $85.00 to $101.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Jefferies Financial Group started coverage on Louisiana-Pacific in a research note on Tuesday, June 23rd. They set a "buy" rating and a $93.00 target price on the stock. Weiss Ratings upgraded Louisiana-Pacific from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, September 2nd. DA Davidson restated a "buy" rating and issued a $99.00 price objective on shares of Louisiana-Pacific in a report on Wednesday, September 2nd. Finally, Wolfe Research initiated coverage on shares of Louisiana-Pacific in a research report on Thursday, September 10th. They set an "outperform" rating and a $90.00 price objective on the stock. Twelve research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $92.50.

Louisiana-Pacific Stock Performance

Shares of NYSE:LPX traded up $0.26 during trading on Monday, hitting $65.95. 558,613 shares of the company traded hands, compared to its average volume of 1,138,091. The stock has a market capitalization of $4.61 billion, a price-to-earnings ratio of 83.49, a PEG ratio of 10.02 and a beta of 1.63. The business's fifty day moving average is $69.50 and its 200-day moving average is $72.39. The company has a quick ratio of 1.67, a current ratio of 3.22 and a debt-to-equity ratio of 0.20. Louisiana-Pacific has a one year low of $62.18 and a one year high of $100.34.

Louisiana-Pacific (NYSE:LPX - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The building manufacturing company reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.56 by ($0.16). Louisiana-Pacific had a return on equity of 4.67% and a net margin of 2.19%. The business had revenue of $664.00 million during the quarter, compared to the consensus estimate of $667.31 million. During the same period in the previous year, the company posted $0.99 EPS. The company's revenue for the quarter was down 12.1% compared to the same quarter last year. As a group, equities analysts predict that Louisiana-Pacific will post 1.08 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Louisiana-Pacific

Institutional investors have recently added to or reduced their stakes in the company. Berkshire Hathaway Inc acquired a new position in shares of Louisiana-Pacific during the 2nd quarter worth $445,593,000. Principal Financial Group Inc. boosted its holdings in shares of Louisiana-Pacific by 20.5% during the 1st quarter. Principal Financial Group Inc. now owns 497,852 shares of the building manufacturing company's stock valued at $36,219,000 after acquiring an additional 84,661 shares in the last quarter. Legal & General Group Plc acquired a new stake in shares of Louisiana-Pacific during the second quarter valued at about $7,219,000. Bank of America Corp DE bought a new position in Louisiana-Pacific in the 2nd quarter valued at approximately $26,389,000. Finally, Maple Rock Capital Partners Inc. boosted its position in Louisiana-Pacific by 36.8% during the 2nd quarter. Maple Rock Capital Partners Inc. now owns 1,521,859 shares of the building manufacturing company's stock worth $119,709,000 after buying an additional 409,300 shares during the period. 94.73% of the stock is owned by institutional investors.

About Louisiana-Pacific

Louisiana-Pacific Corporation NYSE: LPX is a manufacturer of building products used in residential and light commercial construction. The company's portfolio includes engineered wood siding and trim, oriented strand board (OSB), and other engineered wood products designed for wall, roof, and structural applications.

Louisiana-Pacific is best known for its LP SmartSide siding and trim products, which are made from engineered wood and marketed as alternatives to traditional wood siding.

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