UPDATE: UBS Starts Owens Corning (OC) at Buy

UBS analyst John Lovallo initiates coverage on Owens Corning (NYSE: OC) with a Buy rating and a price target of $122.00.

The analyst comments "We initiate OC at Buy. Three key reasons to Buy. 1) We model OC generating over $1bn of free cash flow per year through 2024 (+6% vs. cons in '22e), with a 12% 2023e FCF yield; 2) Significant FCF should allow OC to buy back roughly 12% of its stock by 2024, while reinvesting $1.4bn in capex, completing $555mm of acquisitions, paying roughly $400mm in dividends and retiring $1.2bn of debt on a cumulative basis over the next 3 years; 3) We expect OC's organic revenue growth to outpace the underlying market, while acquisitions should position the company in close proximity to its 2024 revenue target of $10bn."

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 $93.35 yesterday.

You May Also Be Interested In

• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Cantor Fitzgerald Reiterates Overweight Rating on Merlin Labs (MRLN)