Owens Corning (OC) Rating Increased to Buy at Zacks Investment Research
Owens Corning (NYSE:OC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The firm currently has a $70.00 price target on the construction company’s stock. Zacks Investment Research‘s price target points to a potential upside of 11.31% from the company’s previous close.
According to Zacks, “Acquisitions form an important part of Owens Corning’s growth strategy. The recent acquisition of Paroc will enable the company expand geographic scope in Europe and augment its portfolio. Also, the Roofing business is an important contributor to revenues, adding 39% to the total tally in 2017. The company expects demand for Roofing business products to improve in 2018 with consistent growth in the new construction and remodeling markets. Also, strength in the housing markets keeps the demand for Owens Corning’s products robust. However, material and transportation costs are dampening the company’s performance .Also, adverse weather conditions dents demand for Owens Corning’s products to some extent. Meanwhile, shares of the company have underperformed the industry so far this year. Also, earnings estimates for current quarter and 2018 have been stable over the last 30 days, limiting upside potential.”
OC has been the subject of several other reports. Argus cut Owens Corning from a “buy” rating to a “hold” rating and upped their price objective for the stock from $96.52 to $109.00 in a research report on Friday, June 1st. Wells Fargo & Co set a $85.00 price objective on Owens Corning and gave the stock an “outperform” rating in a research report on Thursday, April 26th. Citigroup upped their price objective on Owens Corning from $72.00 to $73.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 20th. KeyCorp lowered their price objective on Owens Corning from $115.00 to $105.00 and set an “overweight” rating for the company in a research report on Thursday, April 26th. They noted that the move was a valuation call. Finally, Royal Bank of Canada reaffirmed a “hold” rating and set a $80.00 price objective on shares of Owens Corning in a research report on Thursday. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and ten have assigned a buy rating to the company’s stock. Owens Corning currently has a consensus rating of “Hold” and an average target price of $85.52.
Owens Corning (NYSE:OC) last released its earnings results on Wednesday, April 25th. The construction company reported $0.80 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.96 by ($0.16). Owens Corning had a return on equity of 11.95% and a net margin of 4.24%. The company had revenue of $1.69 billion for the quarter, compared to analyst estimates of $1.62 billion. During the same period in the previous year, the firm earned $0.85 earnings per share. The company’s revenue for the quarter was up 14.4% compared to the same quarter last year. research analysts forecast that Owens Corning will post 5.54 EPS for the current fiscal year.
Several institutional investors have recently bought and sold shares of OC. Balter Liquid Alternatives LLC purchased a new stake in Owens Corning during the 1st quarter valued at approximately $162,000. Focused Wealth Management Inc purchased a new stake in Owens Corning during the 4th quarter valued at approximately $175,000. Avestar Capital LLC purchased a new stake in Owens Corning during the 4th quarter valued at approximately $176,000. American International Group Inc. purchased a new stake in Owens Corning during the 4th quarter valued at approximately $213,000. Finally, Element Capital Management LLC purchased a new stake in Owens Corning during the 1st quarter valued at approximately $237,000. 92.16% of the stock is owned by institutional investors and hedge funds.
About Owens Corning
Owens Corning, together with its subsidiaries, produces and sells glass fiber reinforcements and other materials for composites; and residential and commercial building materials worldwide. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and manufactures and sells glass fiber products in the form of fabrics, non-wovens, and other specialized products.
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