2023-07-14 12:01:06 ET
Owens Corning ( NYSE: OC ) and TopBuild ( NYSE: BLD ) are likely to report higher earnings than previously estimated, according to analysts at Bank of America Securities. They said on Friday that they raised their EPS estimates for the building-products companies because of gains in new-home construction.
“We expect the acceleration of housing starts by homebuilders to drive upside for Owens Corning’s ( OC ) insulation segment and TopBuild’s ( BLD ) residential business through 2H23 and into 2024,” Rafe Jadrosich, analyst at BofA, said in a July 14 report. “Our channel checks and commentary from public homebuilders indicate the inflection in single-family housing starts that began in 2Q23 will continue into 2H23 due to ongoing strength in new home demand.”
With the beginning of earnings season, BofA maintained its Buy rating on Owens Corning ( OC ) and TopBuild ( BLD ).
BofA raised its price target for Owens Corning ( OC ) to $152 a share from $127 a share previously, based on an enterprise value-to-EBITDA multiple of 7.4 times, up from 7 times, estimated EBITDA for 2024.
The bank also raised its price target for TopBuild ( BLD ) to $305 a share from $255 a share previously, based on an enterprise value-to-EBITDA multiple of 10.5 times, up from 9.5 times, estimated EBITDA for 2024.
Bank of America Securities estimate changes, July 15 | |||||
Owens Corning ( OC ) | |||||
EPS | |||||
New | Old | Consensus | |||
CY 2023E | $11.78 | $10.01 | $10.93 | ||
CY 2024E | $12.52 | $11.03 | $11.59 | ||
TopBuild ( BLD ) | |||||
EPS | |||||
New | Old | Consensus | |||
CY 2023E | $17.28 | $16.62 | $16.28 | ||
CY 2024E | $18.85 | $17.81 | $17.13 |
More about building supplies
- Homebuilder stocks rally on back of unexpected surge in housing starts
- Housing starts surge past consensus in May, building permits also strong
- Building products companies touch 52-week highs
- Owens Corning upgraded to Overweight at Barclays Capital
For further details see:
Owens Corning, TopBuild EPS estimates raised at BofA