Analyst Rafe Jadrosich of Bank of America Securities reiterated a Buy rating on Owens Corning (OC – Research Report), reducing the price target to $214.00.
Rafe Jadrosich has given his Buy rating due to a combination of factors, including Owens Corning’s strong financial performance and strategic decisions. The company reported better-than-expected adjusted earnings per share for the fourth quarter of 2024, driven by higher revenue and resilient margins. Additionally, management’s guidance for ongoing revenue growth and solid EBITDA margins in the first quarter of 2025 supports a positive outlook.
Another key factor in the Buy rating is Owens Corning’s strategic shift towards higher return-on-capital initiatives. The sale of its glass reinforcements business is expected to enhance the company’s return on assets, while the planned expansion of roofing capacity with a new manufacturing plant in the Southeast by 2027 is anticipated to address production limitations and increase market share. These strategic moves, along with the company’s attractive valuation relative to its peers, underpin the Buy recommendation.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $200.00 price target.
Based on the recent corporate insider activity of 116 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.