Wedbush Remains Sidelined on Corning (OC) Following Industry Check - PT to $58
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Rating Summary:
13 Buy, 22 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 10 | New: 10
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Wedbush reiterated a Neutral rating on Owens Corning (NYSE: OC), and raised the price target to $58.00 (from $52.00), following roofing industry checks. Channel checks support a stronger-than-expected 2Q growth of +6.1% comprised of volumes +3.8% and price +2.3%. However, a contract dispute with a large residential customer in the Insulation segment is likely to provide an overhang on the stock near-term. 2Q results are scheduled to be released on July 27th.
Analyst Al Kaschalk commented, "Buy more if you think Owens Corning (OC) will benefit from likely backlog building from repair/replacement activity within Roofing segment while benefiting from the integration of the Interwrap acquisition. While a contract dispute with a large residential customer in the Insulation segment is likely to provide an overhang on the stock near-term, a steepening residential housing start curve could play favorably into industry capacity utilization and produce an environment more favorable to allow OC to achieve pricing and return goals. For our part, we believe consensus CY16 EBITDA estimate of $975 million (Wedbush $977 million), including asphalt deflation of $70 million adequately captures the underlying business fundamentals and reflect in the share price."
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 $52.60 yesterday.
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