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Analysts have raised their price target for Louisiana-Pacific by approximately $3 to $105.30. They cite improved sentiment in the siding business and supportive results from key competitors as justification for the upward revision.

Analyst Commentary

Following recent updates and industry data, analysts have provided both supportive and cautious perspectives regarding Louisiana-Pacific's outlook and valuation.

Bullish Takeaways

• Improved results from a leading competitor in the North American siding market are seen as a positive indicator for Louisiana-Pacific's earnings potential and market sentiment.
• Bullish analysts view the company's siding business as trading at a discount compared to its fundamental value. This suggests upside as sector performance normalizes.
• Continued Buy ratings reflect confidence in management's ability to deliver on volume expectations through the next fiscal year, particularly as sector headwinds moderate.
• Better than expected competitor performance is expected to reduce investor concerns around the company's aggressive growth targets for the coming quarters.

Bearish Takeaways

• Cautious analysts note that recent quarterly performance across the broader sector has been inconsistent, with several packaging and forest product companies struggling amid persistent weakness in consumer demand and tariff uncertainties.
• Target price revisions highlight ongoing concerns about near-term execution risks and the potential impact of one-off industry events on earnings reliability.
• Despite a positive long-term view, some analysts suggest that unpredictable external factors and softer adjacent markets could temper the pace of growth or prevent full valuation realization in the short term.

What's in the News

• Louisiana-Pacific completed the repurchase of 673,625 shares, equating to 0.96% of outstanding shares for $73.13 million as part of the buyback program announced in May 2024 (Key Developments).
• No shares were repurchased between April 1 and June 30, 2025, under the current buyback tranche (Key Developments).
• The company has issued new financial guidance for fiscal 2025, expecting siding net sales to grow approximately 3% year-over-year to $430 million in the third quarter (Key Developments).
• Full-year 2025 siding net sales are projected to increase by about 9% year-over-year, reaching $1.7 billion (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has risen from $102.40 to $105.30, reflecting a modest upward revision in fair value expectations.
• Discount Rate has fallen slightly from 8.56% to 8.36%, which implies marginally lower perceived risk in the company's future cash flows.
• Revenue Growth projections remain unchanged at approximately 4.57% year-over-year. This indicates steady topline expectations.
• Net Profit Margin is stable at about 13.23%, with no material revisions to the profitability outlook.
• Future P/E ratio has increased modestly from 20.15x to 20.60x, which signals a slight expansion in expected valuation multiples.