UBS analyst John Lovallo has maintained their bullish stance on OC stock, giving a Buy rating on February 11.
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John Lovallo has given his Buy rating due to a combination of factors that, in his view, outweigh the near‑term softness in results. Although he trimmed his 2026‑2028 adjusted EBITDA forecasts on slightly weaker expected volumes and margins, he simultaneously lifted his price target to $172 by applying a higher valuation multiple, reflecting his conviction that the market is undervaluing Owens Corning’s medium‑term earnings power.
Lovallo argues that housing market conditions should improve into 2026, supported by tighter existing‑home inventories, ongoing underlying demand, lower mortgage rates versus last year, and early signs of better consumer sentiment. Even with management guiding to year‑over‑year revenue declines and pressured margins across Insulation, Roofing, and Doors in the near term, he views the company’s cash‑flow profile, disciplined capital spending plans, and largely aligned cost guidance as underpinning the long‑term investment case and supporting a continued Buy recommendation.
In another report released on February 11, Wells Fargo also maintained a Buy rating on the stock with a $155.00 price target.