2023-07-27 18:17:37 ET
Owens Corning ( NYSE: OC ) on Thursday was upgraded to Outperform from a previous investment rating of Sector Perform by analysts at RBC Capital. They said the maker of insulation and other products is poised for gains on bigger profits.
“There may be ‘over-earning’ in current results, but we see no clear catalysts for significant near-term reversion lower and an increasing likelihood that eventual margin ‘normalization’ settles out well above historical levels,” Mike Dahl, analyst at RBC, said in a July 27 report. “Valuation remains inexpensive against this backdrop and higher estimates.”
RBC raised its price target for Owens Corning ( OC ) to $168 a share from $135 a share previously, based on a multiple of 12 times adjusted EPS of $13.53 for calendar year 2023.
“We believe that Owens Corning ( OC ) should still trade below its building products peer group (14 times 2023 estimated EPS) given its relative cyclically, high fixed cost structure and significant global exposure,” according to RBC.
RBC Capital Markets estimates for Owens Corning ( OC ), July 27 | |||
EPS, adjusted diluted | |||
New | Old | ||
Q3 2023E | 3.80 | 3.02 | |
Q4 2023E | 2.73 | 2.22 | |
2023E | $13.53 | $11.30 | |
2024E | $12.64 | $11.26 |
More about Owens Corning
- Owens Corning downgraded to Hold at Benchmark
- Owens Corning, TopBuild EPS estimates raised at BofA
- Owens Corning upgraded to Overweight at Barclays Capital
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Owens Corning upgraded to Outperform at RBC Capital