Owens Corning To Host Analyst Day On 11/11

Goldman Sachs has published a research report on Owens Corning OC in anticipation of the company's Analyst Day. In the report, Goldman Sachs writes "By segment we expect the following commentary and guidance: Roofing: We expect OC to raise its long term profit margin range. At last year's analyst day, OC outlined a long term EBIT margin target of 8-12%, however, we see an increase to 12-16% range as more likely. Roofing EBIT margins have safely been in double digits for the last 2-3 years, and despite 3Q volumes being worse than expected (the worst quarter in 20 years), margins held up. If the upper range of long term guidance reaches the high teens (i.e., 18%+) we would expect shares to react positively. While we do not expect commentary on 2011 margins, this is clearly an area of investor focus. Composites: We expect composites to surprise to the upside, and our 2011 estimates remain out of consensus. We believe consensus estimates have not fully factored in additional Chinese capacity, $15 mn in cost saves, and a favorable ruling by the European Commission to impose duties on Chinese imports. Strong supply/demand characteristics will also be a highlight. We believe management's targeted EBIT margin range of 10-14% is secure. Insulation: We expect management to reiterate its long term outlook for this business (12-20% margins), and focus on lowering the break even point while awaiting a recovery in housing activity." Goldman Sachs maintains its Neutral rating and $33 price target. Owens Corning closed yesterday at $28.36.