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Barclays Raises Numbers on Favorite Housing Play, Owens Corning (OC)

September 20, 2012 3:32 PM EDT Send to a Friend
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Price: $34.78 -0.66%

Rating Summary:
    11 Buy, 13 Hold, 0 Sell

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Today's Overall Ratings:
    Up: 21 | Down: 35 | New: 7
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After tour to Owens Corning (NYSE: OC) facilities in Tennessee, analyst at Barclays feel more confident pricing and inventory trends in roofing have markedly improved since a few months ago, driven by more orderly competitive actions, despite a relatively soft season for storm demand.

Analyst also think the company’s restructuring program in the composites segment is well underway, the inventory rationalization is proceeding as planned, and that the division is entering its annual contract price negotiations from a position of strength relative to last year.

In light this, analysts raised roofing margin estimates beginning in 4Q12, noting “upside risk” to FY13 and FY14 composites margins.

“Overall, OC remains our favored way to invest in the ongoing rebound in U.S. housing, the pace and breadth of which has continued to gain momentum over the summer,” said analysts.

“We generally favor those companies with relatively more exposure to housing starts and maintenance/repair and relatively less exposure to large-ticket discretionary remodeling and international markets.”

Barclays raised FY12 and FY13 estimates to $1.69 and $2.93 from $1.65 and 2.74, respectively. They also raised their price target to $42 from $40. Barclay’s has a Overweight rating on Owens Corning.

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 $33.87 yesterday.




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Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

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Barclays, Housing Starts

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