TD Newcrest Downgrades Louisiana-Pacific Corp (LPX) to Reduce; Valuation Call

TD Newcrest downgraded Louisiana-Pacific Corp (NYSE: LPX) to Reduce with a price target of $6.50.

TD analyst says, "We are downgrading our recommendation on Louisiana-Pacific to REDUCE due to valuation. Our OSB price forecast, earnings estimates and target price are unchanged. LP shares have appreciated 64% since the beginning of October compared with declines of 3% and 60% for its closest publicly traded peers Norbord Inc. (NBD-T) and Ainsworth Lumber Co. Ltd. (ANS-T), respectively. We believe LP’s recent share outperformance is overdone."

"We do not forecast a recovery in U.S. housing until 2013 at the earliest, and while we encourage investors to take a countercyclical approach, we see better risk/reward elsewhere in the wood products sector."

For an analyst ratings summary and ratings history on Louisiana-Pacific Corp click here. For more ratings news on Louisiana-Pacific Corp click here.

Shares of Louisiana-Pacific Corp closed at $7.61 yesterday.

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