Weyerhaeuser, Louisiana-Pacific Face Weak Demand Amid Lumber Market Challenges, BofA Says

11:10 AM EDT, 10/14/2026 (MT Newswires) -- Weyerhaeuser (WY), Louisiana-Pacific (LPX) and other lumber and building products makers face flat-to-down demand, persistent affordability issues, and fading confidence in a housing market recovery heading into Q3 earnings, BofA Securities said in a note Wednesday. While the current environment remains the most bearish since 2018, recent lumber and panel pricing gains are linked to tariffs, duties, and supply curtailments rather than any improvement in underlying demand, according to the note. BofA said Louisiana-Pacific should see some modest growth in Q3 and raised its estimate for the quarter by $0.04 to $0.28. It also raised 2026 and 2027 estimates to $1.20 and $2.55 from $1.02 and $2.35, respectively. Additionally, Boise Cascade (BCC) is expected to benefit from improving plywood realizations, with tariffs providing support, while higher diesel and resin costs remain headwinds, the note added. The investment firm raised its Q3 EPS estimate for Boise Cascade by $0.03 to $1.23 and maintained its 2026 EPS estimate at $4.10, while lowering its 2027 EPS estimate by $0.04 to $5.15. BofA upgraded Weyerhaeuser to buy from neutral while lowering its price target to $25 from $28. It cut its price targets on Louisiana-Pacific to $85 from $100 and on Boise Cascade to $80 from $89, while maintaining their respective buy and underperform ratings. Price: 19.00, Change: +0.03, Percent Change: +0.16