BMO Capital analyst Ketan Mamtora maintained a Hold rating on Louisiana-Pacific (LPX – Research Report) yesterday and set a price target of $108.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Ketan Mamtora has given his Hold rating due to a combination of factors impacting Louisiana-Pacific’s performance. Despite the challenging housing market, the company demonstrated a constructive revenue growth outlook of 7-9% year-over-year for its Siding segment, which was promising. However, the guidance for a static EBITDA margin in this segment exerted pressure on the stock, suggesting cautious financial expectations.
The company plans substantial capital expenditure in 2025, estimated at approximately $410 million, which is expected to remain high over the next few years. This increased spending is anticipated to limit share repurchase activities, affecting the company’s financial flexibility. While Mamtora acknowledges the company’s strong balance sheet and profitable growth in the Siding franchise, he believes that the risk and reward are currently balanced, justifying a Hold rating with a target price adjustment to $108.
Mamtora covers the Industrials sector, focusing on stocks such as Beacon Roofing Supply, Louisiana-Pacific, and Masco. According to TipRanks, Mamtora has an average return of 17.1% and a 70.41% success rate on recommended stocks.