Louisiana-Pacific "buy," target price raised

08/05/09 - D.A. Davidson & Co.

NEW YORK, August 5 (newratings.com) - Analysts at DA Davidson maintain their "buy" rating on Louisiana-Pacific (LPX), while raising their estimates for the company. The 12-18 month target price has been revised from $5.50 to $7.50.

In a research note published this morning, the analysts mention that the company has posted its F2Q09 losses in-line with and revenues ahead of the estimates. Louisiana-Pacific's revenues for the current quarter are being boosted by the recent hike in OSB pricing, the analysts say. The company has reduced its losses and has addressed near-term concerns regarding liquidity, DA Davidson adds. The EPS estimate for FY09 has been raised from -$1.02 to -$0.88. The EPS estimate for FY10 has been reduced from -$0.12 to -$0.27.