Owens Corning: Undervalued Growth Potential and Strategic Resilience

Jefferies analyst Philip Ng has maintained their bullish stance on OC stock, giving a Buy rating on May 16.

Philip Ng has given his Buy rating due to a combination of factors that highlight Owens Corning’s undervaluation and potential for growth. The analyst believes that the market has overly discounted the impact of falling insulation prices, while not fully appreciating the company’s ability to maintain higher margins and leverage multiple growth drivers. Owens Corning’s management has indicated that the anticipated declines in insulation volumes are manageable, and even in a worst-case scenario, the stock remains attractively priced.
Ng also points out that Owens Corning’s roofing segment is well-positioned to sustain its margins, supported by strong demand from storm-prone regions and an extensive contractor network. The company’s strategic initiatives in the doors segment, including service improvements and a bundling program, are expected to drive market share gains. Furthermore, Owens Corning’s commitment to returning significant capital to shareholders through buybacks adds to its investment appeal. These factors collectively underpin Ng’s conviction in the stock’s value proposition.

In another report released on May 16, Barclays also maintained a Buy rating on the stock with a $167.00 price target.