2023-07-28 08:39:13 ET
Owens Corning ( NYSE: OC ) on Friday was upgraded to Neutral from a previous investment rating of Underweight by analysts at financial-services firm J.P. Morgan. They said the maker of insulation and other building products is poised for gains on the outlook for its composite materials and roofing businesses.
“While investor concerns regarding the company’s elevated margins are likely to persist, at the same time, composites margins have already fallen materially from 2022 amid a softer demand backdrop, while roofing margins are likely to remain strong at least through year-end,” Michael Rehaut, analyst at J.P. Morgan, said in a July 28 report.
Owen Corning’s ( OC ) stock is trading at a “reasonable” valuation with a multiple of 6.6 times estimated EBITDA for 2023, according to J.P. Morgan. That multiple is approximately a 5% discount to the five-year average and 15% discount to its 10-year average.
J.P. Morgan raised its earnings estimates for Owens Corning ( OC ), and its price target to $133 a share from $95 a share, based on a target enterprise value-to-EBITDA multiple of six times estimated EBITDA for 2024, up from a multiple of 5.6 times.
Owens Corning ( OC ) this week reported adjusted EPS of $4.22 for Q2, beating the consensus estimate of $3.25. Revenue slipped 1% from a year earlier to $2.56 billion, greater than the average estimate of $2.54 billion.
RBC Capital yesterday upgraded its rating on Owens Corning ( OC ).
Seeking Alpha columnist The Pineapple Investor rates Owens Corning ( OC ) as a Buy, based on its current valuation . Contributor MJ Investing also has a Buy rating on Owens Corning ( OC ) because of management’s goals to create value .
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Owens Corning upgraded to Neutral at J.P. Morgan