02:45 PM EDT, 05/15/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target by $6 to $78 on an EV/EBITDA of 9.9x our 2025 EBITDA estimate, in line with LPX's three-year average. We cut our 2025 EPS view by $1.13 to $4.46 and 2026's by $1.04 to $5.46. Looking ahead, LPX has reduced its 2025 adjusted EBITDA target to $535M-$555M vs. its prior guidance of $615M-$635M, a 12.8% reduction at the midpoint. The reduction is largely driven by lower expectations for OSB adjusted EBITDA, now expected to deliver $110M-$120M vs. original guidance of $200M-$210M, a 43.9% reduction at the midpoint. We see little relief in the housing market, with mortgage rates remaining elevated until at least the second half of the year, stagnant housing starts, and continued affordability problems. While these factors are outside the company's control, we see LPX focusing on what it can control, including its strategic shift away from the commodity OSB business to prioritize its Siding Solutions business, and returning value to shareholders through dividends and share repurchases.