Wolfe Research Initiates Coverage on Louisiana-Pacific (NYSE:LPX)

Key Points

• Wolfe Research initiated coverage of Louisiana-Pacific with an “outperform” rating and a $90 price target, implying approximately 33% upside from the reported $67.59 share price.
• Analyst sentiment is broadly positive: 12 analysts rate the stock Buy, one rates it Hold, and two rate it Sell, producing a consensus “Moderate Buy” rating and a $93.67 average price target.
• Louisiana-Pacific’s latest quarter fell short of expectations, with EPS of $0.40 versus a $0.56 estimate and revenue down 12.1% year over year; institutional investors own 94.73% of the stock, including a newly disclosed Berkshire Hathaway position.

Research analysts at Wolfe Research started coverage on shares of Louisiana-Pacific (NYSE:LPX - Get Free Report) in a research report issued on Thursday, Briefing.com reports. The brokerage set an "outperform" rating and a $90.00 price target on the building manufacturing company's stock. Wolfe Research's price target would suggest a potential upside of 33.15% from the company's current price.

A number of other brokerages have also recently issued reports on LPX. Truist Financial cut their target price on shares of Louisiana-Pacific from $91.00 to $89.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Barclays cut their price objective on Louisiana-Pacific from $93.00 to $92.00 and set an "overweight" rating for the company in a research report on Thursday, August 6th. TD upped their target price on Louisiana-Pacific from $86.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. The Goldman Sachs Group increased their target price on Louisiana-Pacific from $66.00 to $74.00 and gave the company a "sell" rating in a report on Thursday, August 6th. Finally, Bank of America raised their price target on Louisiana-Pacific from $85.00 to $101.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Twelve investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Louisiana-Pacific presently has an average rating of "Moderate Buy" and a consensus target price of $93.67.

Louisiana-Pacific Stock Up 0.8%

Louisiana-Pacific stock opened at $67.59 on Thursday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.67 and a current ratio of 3.22. The firm has a market capitalization of $4.73 billion, a price-to-earnings ratio of 85.56, a price-to-earnings-growth ratio of 9.49 and a beta of 1.59. Louisiana-Pacific has a fifty-two week low of $66.09 and a fifty-two week high of $100.34. The stock's fifty day moving average is $73.12 and its two-hundred day moving average is $74.38.

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 firm had revenue of $664.00 million for the quarter, compared to analyst estimates of $667.31 million. During the same period last year, the firm earned $0.99 EPS. The company's quarterly revenue was down 12.1% compared to the same quarter last year. Analysts predict that Louisiana-Pacific will post 1.17 EPS for the current fiscal year.

Institutional Trading of Louisiana-Pacific

Several hedge funds and other institutional investors have recently bought and sold shares of LPX. Berkshire Hathaway Inc purchased a new position in shares of Louisiana-Pacific in the second quarter valued at $445,593,000. Jefferies Financial Group Inc. purchased a new stake in Louisiana-Pacific during the 4th quarter worth $14,472,000. Geode Capital Management LLC increased its stake in Louisiana-Pacific by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 1,160,434 shares of the building manufacturing company's stock worth $93,735,000 after buying an additional 18,287 shares during the period. Principal Financial Group Inc. lifted its holdings in Louisiana-Pacific by 20.5% in the 1st quarter. Principal Financial Group Inc. now owns 497,852 shares of the building manufacturing company's stock worth $36,219,000 after buying an additional 84,661 shares in the last quarter. Finally, Thrivent Financial for Lutherans lifted its holdings in Louisiana-Pacific by 2,547.1% in the 4th quarter. Thrivent Financial for Lutherans now owns 385,416 shares of the building manufacturing company's stock worth $31,126,000 after buying an additional 370,856 shares in the last quarter. 94.73% of the stock is owned by hedge funds and other institutional investors.

About Louisiana-Pacific

Louisiana-Pacific Corporation NYSE: LPX is a leading manufacturer of building materials and engineered wood products for residential, industrial and light commercial construction. The company produces a diverse portfolio of products, including oriented strand board (OSB), engineered wood siding, trim, molding, sheathing panels and subflooring. Its flagship product lines, such as LP® SmartSide® trim and siding, are designed to offer enhanced durability, moisture resistance and ease of installation, helping builders and homeowners achieve long-lasting performance in a variety of climates.

Founded in 1973 as a spin-off from Georgia-Pacific, Louisiana-Pacific established its reputation by pioneering innovative manufacturing techniques for OSB, becoming one of the first companies to bring the product to market in the 1980s.

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