OC Composite Materials Will Be Major Contributor To Earnings Growth, Jefferies Reports

In a report released this morning, Jefferies said that it continues to support Owens Corning OC “and believe the company's composite materials business will be a major contributor to earnings growth in 2011-12.” “The company is investing to expand capacity at production facilities in Mexico, China, Russia and Italy,” Jefferies writes. “We believe steady growth in demand for composite materials from a number of global trends (auto, energy, construction) and favorable pricing levels will support these new expansion opportunities. The company's position in high growth emerging markets and diversification across transportation, construction, consumer and energy end markets are key competitive strengths, in our view.” Owens Corning closed Tuesday at $36.66.