Louisiana-Pacific Corp

LPX: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$25.00	Lwnfw	Rwrzgzmct

Louisiana-Pacific Earnings: Housing Market Weakness Constrains Wood Product Demand

Spencer Liberman

Nov 2, 2023

No-moat-rated Louisiana Pacific reported third-quarter results that were largely in line with our expectations as the company continues to navigate a challenging operating environment. Net sales fell over 14% year over year as all segments reported double-digit declines. LP’s end markets remained constrained as higher interest rates and weak new residential housing construction weighed on demand for wood products. While the company has made sequential progress, housing markets have shown few signs of improvement in the second half of the year. We've increased our fair value estimate to $52 per share from $51 due to the time value of money.

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