NEW YORK (AP) -- A Deutsche Bank analyst upgraded Louisiana-Pacific Corp. Thursday following the building-products company's acquisition of Ainsworth Lumber.
THE SPARK: Analyst Mark Wilde upgraded Louisiana-Pacific's stock to a "Buy" rating from "Hold" and raised his price target on the stock to $21 from $20.
THE BIG PICTURE: Late Wednesday, Louisiana-Pacific said that it is buying Canada-based Ainsworth Lumber Co. for $1.1 billion, which includes debt.
Louisiana-Pacific makes plywood, roof decking and other home construction materials. Ainsworth Lumber makes plywood and other wood products for use in construction.
THE ANALYSIS: The acquisition will give Louisiana-Pacific access to the growing Asian markets, Wilde said in a note to clients, especially Japan.
Louisiana-Pacific didn't immediately respond to an emailed request for comment.
SHARE ACTION: Shares of Louisiana-Pacific rose $1.69, or 11 percent, to close at $16.95 Thursday. Its shares are still down 12 percent since the beginning of the year, and are down 25 percent since hitting a 52-week high of $22.55 in March.