UPDATE: D.A. Davidson & Co Increases PT on Louisiana-Pacific Corporation

According to a research report this morning, D.A. Davidson is raising estimates following high expectations for a stronger quarter to come on the cost front for Louisiana-Pacific LPX including a rise in PT from $8.50 to $9.50. D.A. Davidson stated, “2012 projected loss narrows from $0.48 to $0.07 following the 9-cent beat in Q1 and expectations that the company will continue to make progress on the cost front. With respect to the variance in Q1, it is worth noting that our OSB pricing assumption of $200/msf was quite close to the Q1 average of $203 (7/16” North Central) – better than anticipated volume and progress on the cost front were therefore the drivers of the “beat”.” LPX closed yesterday at $9.49 as D.A. Davidson maintains its Neutral rating.