UBS Maintains a 'Sell' on Louisiana-Pacific Corp (LPX); Remain Cautious Due To Continued Oversupply in OSB
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Price: $71.75 -2.9%
Rating Summary:
11 Buy, 7 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 20 | New: 20
Rating Summary:
11 Buy, 7 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 20 | New: 20
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UBS maintains a 'Sell' on Louisiana-Pacific Corp (NYSE: LPX) price target raised from $7.50 to $8.00.
Analyst, Gail S. Glazerman, said, "1Q loss of $0.09 vs UBSe $0.14 loss, consensus estimate of $0.15 loss...We are raising our 2Q estimate to a $0.02 loss (from $0.14 loss); last year LPX lost $0.24. Our new 2012 estimate is a $0.40 loss (was $0.60). We assume Siding can maintain the recent runrate of profit. Our estimate assumes $15 sequential pickup in OSB prices. But we still expect prices to drift down from current 2-year highs."
"N. American OSB markets continue to run at ~65% of capacity. Management estimates about 4bn sq feet excess capacity at plants that are currently running. As such, the industry should be able to ramp up production 25% without even having to think about restarting idled lines. With this imbalance we worry that it will be hard to maintain pricing well above cash costs for prolonged periods."
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 $9.49 yesterday.
Analyst, Gail S. Glazerman, said, "1Q loss of $0.09 vs UBSe $0.14 loss, consensus estimate of $0.15 loss...We are raising our 2Q estimate to a $0.02 loss (from $0.14 loss); last year LPX lost $0.24. Our new 2012 estimate is a $0.40 loss (was $0.60). We assume Siding can maintain the recent runrate of profit. Our estimate assumes $15 sequential pickup in OSB prices. But we still expect prices to drift down from current 2-year highs."
"N. American OSB markets continue to run at ~65% of capacity. Management estimates about 4bn sq feet excess capacity at plants that are currently running. As such, the industry should be able to ramp up production 25% without even having to think about restarting idled lines. With this imbalance we worry that it will be hard to maintain pricing well above cash costs for prolonged periods."
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 $9.49 yesterday.
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