Louisiana-Pacific Corp (LPX) PT Raised to $117 at Loop Capital

Loop Capital analyst Jeffrey Stevenson raised the price target on Louisiana-Pacific Corp (NYSE: LPX) to $117.00 (from $100.00) while maintaining a Hold rating.

The analyst commented: "LPX reported another impressive siding driven beat as the company continues to benefit from healthy organic growth and share gains in its core siding business. LPX saw strong siding volumes (+15% YoY) and pricing (+6%) during the quarter which benefited from a favorable mix. In addition, siding adjusted EBITDA margin of 29.3% increased 870bp YoY from a combination of improved segment sales and a $5M benefit from the one-time press rebuild at its Dawson Creek plant last year. After the 3Q24 beat, LPX raised its FY24 adjusted EBITDA guidance to $655M to $675M ($580M to $620M previously) which assumes siding sales growth of 17% (14-16% previously) with ~25% segment adjusted EBITDA margin. While LPX has benefited from strong FY24 siding results after exiting a challenging period of channel de-stocking, management believes it is well positioned to see continued siding demand strength next year from organic growth and continued share gains in both its new residential and R&R end markets. As a result, the company announced its next siding capacity expansion project that will begin in FY25. Although we are maintaining our Hold rating after the recent share price appreciation, we are increasing our PT to $117 (+$17) based on 13x our new FY25E EBITDA of $635M."

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