Wedbush Starts Owens Corning (OC) at Outperform
Wedbush initiated coverage on Owens Corning (NYSE: OC) with an Outperform rating and a price target of $50.00.
"While the stock is subject to the gyrations (timing and pace) of the new residential construction and residential repair and remodel (R&R) cycle, we believe OCâs earnings profile can continue to benefit from its three-legged stool: (i) strong positioning and rational pricing within the Roofing segment supports EBIT margin of 18-22% in the current cycle; (ii) capacity rationalization, 5-7% organic growth in global glass fiber market and pricing can expand Compositemargin 500-600 bps by mid-2015; and (iii) price cadence of 10-15% should reinforce return to profitability within the Insulation business in CY14," wrote analyst Al Kaschalk.
For an analyst ratings summary and ratings history on Owens Corning click here. For more ratings news on Owens Corning click here. Shares of Owens Corning closed at $43.18 yesterday, with a 52 week range of $25.70-$45.55.
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