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UPDATE: BMO Capital Upgrades Norbord (OSB) to Outperform

June 14, 2019 5:28 AM EDT
Get Alerts OSB Hot Sheet
Price: $43.13 --0%

Rating Summary:
    3 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 40 | New: 22
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(Updated - June 14, 2019 7:53 AM EDT)

(updated to add analyst comments)

BMO Capital analyst Ketan Mamtora upgraded Norbord (NYSE: OSB) from Market Perform to Outperform with a price target of $28.00 (from $26.00).

  • LP and Norbord's announcements to indefinitely idle OSB mills remove 5% of industry capacity
  • This should alleviate supply overhang and aid OSB prices
  • A ~75bps drop in mortgage rates should strengthen "cyclical" housing demand as we move into H2
  • Valuation appears very attractive at current levels (5.0x our 2020 EBITDA), balance sheet is healthy (0.9x net leverage), and Norbord has made solid progress in improving European performance.

For an analyst ratings summary and ratings history on Norbord click here. For more ratings news on Norbord click here.

Shares of Norbord closed at $21.55 yesterday.



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