Owens Corning: Strategic Positioning and Financial Outlook Drive Buy Rating

Owens Corning (OC – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Philip Ng from Jefferies maintained a Buy rating on the stock and has a $172.00 price target.

Philip Ng has given his Buy rating due to a combination of factors that highlight Owens Corning’s strategic positioning and financial outlook. The company has reshaped its portfolio and implemented structural cost reductions, which are expected to support higher margins and reduce cyclicality throughout economic cycles. Additionally, Owens Corning is committed to returning significant free cash flow to shareholders, signaling management’s confidence in the stock’s undervaluation.
Furthermore, Owens Corning’s 2028 targets suggest robust growth, with expectations of substantial sales and EBITDA margins, driven by internal capital investments rather than external factors like pricing or mergers and acquisitions. The company’s focus on less cyclical insulation applications and sustainable roofing margins, alongside synergies from the Masonite acquisition, further solidify its growth prospects. These strategic initiatives and financial commitments underpin Philip Ng’s optimistic outlook on Owens Corning’s stock.

In another report released today, Barclays also maintained a Buy rating on the stock with a $167.00 price target.

OC’s price has also changed moderately for the past six months – from $193.990 to $142.520, which is a -26.53% drop .