Bank of America Securities analyst Rafe Jadrosich has reiterated their bullish stance on OC stock, giving a Buy rating today.
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Rafe Jadrosich has given his Buy rating due to a combination of factors including Owens Corning’s strong first-quarter performance and its attractive valuation metrics. The company reported an adjusted EPS that surpassed expectations, driven by robust revenue and margin improvements in its roofing and insulation segments, despite some weaknesses in the doors segment. Jadrosich notes that Owens Corning’s stock is trading at a compelling multiple, with a free cash flow yield of 9.5% and an EV/EBITDA ratio of 6.6x, which he believes undervalues the quality and resilience of its roofing segment and its improving return on capital profile.
Looking ahead, although the second-quarter guidance appears slightly conservative, particularly due to challenges in the doors and insulation segments, there is potential upside in roofing margins due to recent price hikes and stable input costs. Additionally, Owens Corning’s strategic moves, such as seeking alternative supply sources to mitigate tariff impacts and its focus on capital allocation, are expected to bolster its financial performance. These factors, along with the anticipated sale of its glass reinforcements business, contribute to Jadrosich’s positive outlook on the stock.
In another report released today, Barclays also maintained a Buy rating on the stock with a $167.00 price target.
Based on the recent corporate insider activity of 131 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OC in relation to earlier this year.