Oppenheimer Initiates Outperform Rating on Louisiana-Pacific Corp.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy LPX?
Source: seekingalpha
- Coverage Initiation: Oppenheimer initiated coverage of Louisiana-Pacific Corp. (LPX) with an Outperform rating and a $115 price target, indicating the market's undervaluation of its growth potential.
- Growth Outlook: Analyst Tyler Batory highlighted that LPX's engineered wood siding segment represents a sustained growth opportunity within a traditionally cyclical industry, with siding revenue expected to grow about 8% in fiscal 2026 despite challenging macro conditions.
- Margin Expansion: The segment's EBITDA margins are projected to expand to approximately 26% by 2027, driven by improved capacity utilization and the introduction of new offerings, thereby enhancing the company's profitability.
- Valuation Approach: Oppenheimer employs a sum-of-the-parts valuation, applying a 15x multiple on its 2026 siding EBITDA estimate and a 6x multiple on normalized OSB EBITDA, indicating potential for excess cash flow for dividends and share repurchases once market conditions stabilize.
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Analyst Views on LPX
Wall Street analysts forecast LPX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LPX is 104.69 USD with a low forecast of 94.00 USD and a high forecast of 117.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 93.830
Low
94.00
Averages
104.69
High
117.00
Current: 93.830
Low
94.00
Averages
104.69
High
117.00
About LPX
Louisiana-Pacific Corporation is a provider of building solutions. The Company manufactures engineered wood products that meet the demands of builders, remodelers and homeowners worldwide. It operates through three segments: Siding, Oriented Strand Board (OSB), and LP South America (LPSA). The Siding segment serves diverse end markets with a product portfolio of engineered wood siding, trim, soffit, and fascia, including LP SmartSide Trim & Siding, LP SmartSide ExpertFinish Trim & Siding, LP BuilderSeries Lap Siding, and LP Outdoor Building Solutions. The OSB segment manufactures and distributes OSB structural panel products, including the value-added OSB product portfolio known as LP Structural Solutions. The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oppenheimer Initiates Outperform Rating on Louisiana-Pacific Corp.
- Coverage Initiation: Oppenheimer initiated coverage of Louisiana-Pacific Corp. (LPX) with an Outperform rating and a $115 price target, indicating the market's undervaluation of its growth potential.
- Growth Outlook: Analyst Tyler Batory highlighted that LPX's engineered wood siding segment represents a sustained growth opportunity within a traditionally cyclical industry, with siding revenue expected to grow about 8% in fiscal 2026 despite challenging macro conditions.
- Margin Expansion: The segment's EBITDA margins are projected to expand to approximately 26% by 2027, driven by improved capacity utilization and the introduction of new offerings, thereby enhancing the company's profitability.
- Valuation Approach: Oppenheimer employs a sum-of-the-parts valuation, applying a 15x multiple on its 2026 siding EBITDA estimate and a 6x multiple on normalized OSB EBITDA, indicating potential for excess cash flow for dividends and share repurchases once market conditions stabilize.
See More
W. Bradley Southern to Step Down as Chairperson and Retire from LP Building Solutions Board
- Retirement Announcement: W. Bradley Southern has announced his retirement from his roles as board and chairperson.
- Impact on Organization: His departure may lead to significant changes in leadership and direction for the organization.
See More
Elwood Capital Partners Acquires 40,000 Shares of LPX Worth $3.55 Million
- New Investment Position: Elwood Capital Partners initiated a new position in Louisiana-Pacific Corporation (LPX) by acquiring 40,000 shares valued at approximately $3.55 million during Q3, indicating confidence in the stock's future potential.
- Asset Management Status: This acquisition brings Elwood's total U.S. equity positions to 19, with an AUM of $163.77 million, demonstrating its ongoing expansion in a diversified investment portfolio.
- Market Performance Analysis: As of Wednesday, LPX shares were priced at $82.55, down 21% over the past year, significantly underperforming the S&P 500's approximately 15% gain during the same period, reflecting market concerns about the company's future profitability.
- Financial Health Status: Despite a drop in adjusted EBITDA from $153 million to $82 million in Q3, the company maintains $1.1 billion in liquidity and positive operating cash flow of $89 million, showcasing the robustness of its financial foundation.
See More
Elwood Capital Acquires 40,000 Shares of Louisiana-Pacific Corporation Worth $3.55 Million
- New Investment Position: Elwood Capital Partners initiated a new stake in Louisiana-Pacific Corporation by acquiring 40,000 shares valued at approximately $3.55 million, marking its first investment in the company and enhancing its market presence in the building materials sector.
- Assets Under Management: This acquisition brings Elwood Capital's total reportable 13F assets under management to $163.77 million, indicating a strategic diversification in its investment portfolio, particularly in the potential growth opportunities within the construction industry.
- Market Performance Analysis: Louisiana-Pacific's shares are currently priced at $82.55, reflecting a 21% decline over the past year, which underperforms the S&P 500, suggesting market caution regarding its future profitability.
- Financial Health Status: Despite facing pricing pressures, Louisiana-Pacific maintains $1.1 billion in liquidity and positive operating cash flow of $89 million, demonstrating resilience and ongoing investment capability in a challenging market environment.
See More
Tech Stocks Surge, Silver Reaches All-Time Highs: What’s Driving the Markets This Friday?
U.S. Stock Market Performance: U.S. stocks rose on Friday, driven by optimism in the AI sector, with the Nasdaq-100 leading gains, particularly in tech and chipmaker stocks like Micron Technology and Nvidia, which saw significant increases following strong earnings reports.
Earnings Reports Impact: Carnival Corp's shares surged 8% after exceeding quarterly earnings expectations, while Nike Inc. saw a 10% drop despite beating profit estimates due to concerns over margin pressure and slowing sales.
Commodity Market Trends: Commodities experienced gains, with silver reaching record highs and gold trading near its peak, while crude oil prices rose for the third consecutive session after recent lows.
Cryptocurrency and Equities: Crypto-linked stocks advanced alongside digital assets, with Bitcoin trading above $87,000 and notable gains in companies like Strategy Inc., reflecting a positive trend in the cryptocurrency market.
See More
LP Building Solutions Donates Over $1.6 Million in 2025 Charitable Contributions
- Growing Charitable Contributions: LP Building Solutions announced charitable donations exceeding $1.6 million in 2025, marking the sixth consecutive year of increased contributions and the second year in a row surpassing $1 million, demonstrating the company's strong commitment to community support.
- Diverse Funding Programs: Since 1985, the LP Foundation has contributed over $23 million to more than 120 nonprofits and public schools, focusing on affordable housing, environmental stewardship, and future workforce development, thereby reinforcing the company's leadership in corporate social responsibility.
- Disaster Relief Initiatives: The LP Foundation activated its disaster relief program in response to wildfires in Minnesota and flooding in North Carolina this year, showcasing the company's sense of responsibility and proactive approach to community support during crises.
- Educational and Environmental Partnerships: LP partnered with the National Forest Foundation to support reforestation efforts and provided product donations to several universities, helping students gain hands-on experience, which reflects the company's strategic investment in sustainable development and education.
See More
Oppenheimer Initiates Outperform Rating on Louisiana-Pacific Corp.
- Coverage Initiation: Oppenheimer initiated coverage of Louisiana-Pacific Corp. (LPX) with an Outperform rating and a $115 price target, indicating the market's undervaluation of its growth potential.
- Growth Outlook: Analyst Tyler Batory highlighted that LPX's engineered wood siding segment represents a sustained growth opportunity within a traditionally cyclical industry, with siding revenue expected to grow about 8% in fiscal 2026 despite challenging macro conditions.
- Margin Expansion: The segment's EBITDA margins are projected to expand to approximately 26% by 2027, driven by improved capacity utilization and the introduction of new offerings, thereby enhancing the company's profitability.
- Valuation Approach: Oppenheimer employs a sum-of-the-parts valuation, applying a 15x multiple on its 2026 siding EBITDA estimate and a 6x multiple on normalized OSB EBITDA, indicating potential for excess cash flow for dividends and share repurchases once market conditions stabilize.
See More
W. Bradley Southern to Step Down as Chairperson and Retire from LP Building Solutions Board
- Retirement Announcement: W. Bradley Southern has announced his retirement from his roles as board and chairperson.
- Impact on Organization: His departure may lead to significant changes in leadership and direction for the organization.
See More
Elwood Capital Partners Acquires 40,000 Shares of LPX Worth $3.55 Million
- New Investment Position: Elwood Capital Partners initiated a new position in Louisiana-Pacific Corporation (LPX) by acquiring 40,000 shares valued at approximately $3.55 million during Q3, indicating confidence in the stock's future potential.
- Asset Management Status: This acquisition brings Elwood's total U.S. equity positions to 19, with an AUM of $163.77 million, demonstrating its ongoing expansion in a diversified investment portfolio.
- Market Performance Analysis: As of Wednesday, LPX shares were priced at $82.55, down 21% over the past year, significantly underperforming the S&P 500's approximately 15% gain during the same period, reflecting market concerns about the company's future profitability.
- Financial Health Status: Despite a drop in adjusted EBITDA from $153 million to $82 million in Q3, the company maintains $1.1 billion in liquidity and positive operating cash flow of $89 million, showcasing the robustness of its financial foundation.
See More
Elwood Capital Acquires 40,000 Shares of Louisiana-Pacific Corporation Worth $3.55 Million
- New Investment Position: Elwood Capital Partners initiated a new stake in Louisiana-Pacific Corporation by acquiring 40,000 shares valued at approximately $3.55 million, marking its first investment in the company and enhancing its market presence in the building materials sector.
- Assets Under Management: This acquisition brings Elwood Capital's total reportable 13F assets under management to $163.77 million, indicating a strategic diversification in its investment portfolio, particularly in the potential growth opportunities within the construction industry.
- Market Performance Analysis: Louisiana-Pacific's shares are currently priced at $82.55, reflecting a 21% decline over the past year, which underperforms the S&P 500, suggesting market caution regarding its future profitability.
- Financial Health Status: Despite facing pricing pressures, Louisiana-Pacific maintains $1.1 billion in liquidity and positive operating cash flow of $89 million, demonstrating resilience and ongoing investment capability in a challenging market environment.
See More
Tech Stocks Surge, Silver Reaches All-Time Highs: What’s Driving the Markets This Friday?
U.S. Stock Market Performance: U.S. stocks rose on Friday, driven by optimism in the AI sector, with the Nasdaq-100 leading gains, particularly in tech and chipmaker stocks like Micron Technology and Nvidia, which saw significant increases following strong earnings reports.
Earnings Reports Impact: Carnival Corp's shares surged 8% after exceeding quarterly earnings expectations, while Nike Inc. saw a 10% drop despite beating profit estimates due to concerns over margin pressure and slowing sales.
Commodity Market Trends: Commodities experienced gains, with silver reaching record highs and gold trading near its peak, while crude oil prices rose for the third consecutive session after recent lows.
Cryptocurrency and Equities: Crypto-linked stocks advanced alongside digital assets, with Bitcoin trading above $87,000 and notable gains in companies like Strategy Inc., reflecting a positive trend in the cryptocurrency market.
See More
LP Building Solutions Donates Over $1.6 Million in 2025 Charitable Contributions
- Growing Charitable Contributions: LP Building Solutions announced charitable donations exceeding $1.6 million in 2025, marking the sixth consecutive year of increased contributions and the second year in a row surpassing $1 million, demonstrating the company's strong commitment to community support.
- Diverse Funding Programs: Since 1985, the LP Foundation has contributed over $23 million to more than 120 nonprofits and public schools, focusing on affordable housing, environmental stewardship, and future workforce development, thereby reinforcing the company's leadership in corporate social responsibility.
- Disaster Relief Initiatives: The LP Foundation activated its disaster relief program in response to wildfires in Minnesota and flooding in North Carolina this year, showcasing the company's sense of responsibility and proactive approach to community support during crises.
- Educational and Environmental Partnerships: LP partnered with the National Forest Foundation to support reforestation efforts and provided product donations to several universities, helping students gain hands-on experience, which reflects the company's strategic investment in sustainable development and education.
See More
