Owens Corning, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Rafe Jadrosich from Bank of America Securities reiterated a Buy rating on the stock and has a $168.00 price target.
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Rafe Jadrosich has given his Buy rating due to a combination of factors including the attractive valuation of Owens Corning’s stock. Despite lowering the earnings per share estimates for 2025 and 2026 due to anticipated challenges in roofing volume and insulation margins, the stock is seen as undervalued. The valuation is supported by a free cash flow yield of 9.2% and an EV/EBITDA multiple of 7.0x for 2026, which suggests potential upside.
Owens Corning is expected to outperform the industry due to increased production of laminate shingles and a robust contractor program backlog. Although there are pressures from fewer storm events and lower single-family housing starts, the company’s commercial and industrial demand remains strong. The stock’s historical discount to peers does not fully reflect improvements in structural margins and return on invested capital, making it an attractive investment opportunity.
Jadrosich covers the Consumer Cyclical sector, focusing on stocks such as KB Home, DR Horton, and PulteGroup. According to TipRanks, Jadrosich has an average return of 11.0% and a 59.12% success rate on recommended stocks.
In another report released on September 22, Wells Fargo also maintained a Buy rating on the stock with a $175.00 price target.