In a report published on Wednesday analyst at Wedbush initiated coverage on Owens Corning OC with Outperform rating an $50 PT.
In the report lead analyst Al Kaschalk commented that, "Owens Corning is a cyclical play on the U.S. housing market, with 65% of the business tied to construction trends through the firm's insulation and roofing business. While the stock is subject to the gyrations (timing and pace) of the new residential construction and residential repair and remodel (R&R) cycle, we believe OC's earnings profile can continue to benefit from its three-legged stool: (i) strong positioning and rational pricing within the Roofing segment supports EBIT margin of 18-22% in the current cycle; (ii) capacity rationalization, 5-7% organic growth in global glass fiber market and pricing can expand Composite margin 500-600 bps by mid-2015; and (iii) price cadence of 10-15% should reinforce return to profitability within the Insulation business in CY14."
Owens Corning is currently down 1.64 percent and trades at $41.95
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