J.P. Morgan Overweight On Owens Corning (OC)

J.P. Morgan Chase & Co. has an Overweight rating and a $34.50 price target on shares of Owens Corning OC, after the company hosted its analyst day yesterday. In a research report sent to clients, J.P. Morgan writes, "After attending OC's Analyst Day yesterday at its corporate headquarters in Toledo, OH, we provide the following key takeaways. Overall, we believe the strong performance and positive momentum of the company's operating margins over the last two years drive our confidence that OC's segment margin assumptions going forward are achievable. Specifically, we note the company pointed to long-term operating margins of mid-teens or better for its Roofing segment, consistent with our outlook for slightly improving demand and a supportive pricing environment, mid-teens margins for its Composites business, which we view as reasonable given the segment's strong recovery and double-digit margin potential in 2011, as well as a roughly 6% margin for its Insulation segment, compared to a mid-cycle 15% level for this business." Shares of OC lost 26 cents yesterday to close at $27.66, a loss of 0.9%.