BMO Capital Lowers Louisiana-Pacific (LPX) Price Target to $98, Maintains Market Perform

Core Viewpoint - BMO Capital has lowered the price target for Louisiana-Pacific Corporation (LPX) to $98 from $108 while maintaining a Market Perform rating, citing attractive valuation due to recent stock pullback and strong performance in Siding products, particularly the higher-priced ExpertFinish line [1]. Financial Performance - For Q3 2025, Louisiana-Pacific reported revenue of $663 million, a decrease of over 8% compared to the same quarter last year [2]. - Siding revenue increased by $22 million, or 5%, primarily driven by a 5% rise in selling prices [2]. - Within the Siding segment, ExpertFinish net sales grew by 31% for the quarter and 24% for the nine months ending September 30, 2025, compared to the prior-year periods [2]. Strategic Focus - Louisiana-Pacific is focused on expanding its value-added product lines, especially in Siding, with long-term growth reliant on product innovation, operational efficiency, and market demand adaptation [3]. - The company emphasizes overall equipment effectiveness (OEE) and is targeting international expansion, particularly in South America [3]. Product Offerings - Louisiana-Pacific manufactures engineered wood products for residential, commercial, and industrial construction, with main offerings including Siding and OSB, serving both new home construction and remodeling markets [4].