UBS maintained a Sell rating on Louisiana-Pacific Corp (NYSE: LPX) and lowered its price target to $10.00 (from $12.00). The change follows Q1 results. Analyst Gail S. Glazerman noted a better than expected print on strength in siding but she doesn't view this as sustainable.

"LPX has performed very well in Siding over the past several years, which is clearly encouraging. They are investing in Siding with a conversion slated to start in 4Q15. But they have about 1 billion square feet of Siding; they have nearly 5x more OSB capacity than Siding. OSB markets remain challenged. We estimate it would take about 1.3 million starts to absorb running OSB capacity. There are still several idled mills which could return and a smaller player is preparing to build a new plant for 2017 start," said Glazerman.

"We remain cautious on LPX. We believe current share price is already factoring a return to normal conditions. But visibility into this turn is limited and could still be well over a year away. We have lowered our target to $10 from $12. This reflects the shares trading at 7x a blend of 2015E/normalized EV/EBITDA. The change reflects our new 2015 estimate and updated balance sheet," added the analyst.

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 $17.18 yesterday.