Owens Corning Stock Rating Lowered by KeyCorp (OC)
Owens Corning (NYSE:OC) was downgraded by analysts at KeyCorp from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday, TheFlyOnTheWall.com reports. They currently have a $51.00 target price on the stock. KeyCorp’s price objective suggests a potential upside of 36.33% from the company’s current price.
The analysts wrote, “We are downgrading Owens Corning (OC-NYSE) to HOLD from BUY as we think consensus estimates are too high, insulation is exhibiting lower unit operating leverage than expected despite good pricing, and a business mix that dilutes management’s ability to guide within a tight range. With the cycle maturing, timing normalized EBITDA ($1.15 billion) is a challenge as its businesses operate on distinct waves rather than in concert. 3Q13 EPS of $0.53 came in below our $0.69 estimate and the street at $0.64, on lower than expected roofing and insulation sales and EBIT, with our 2014 estimates falling on lower insulation sales/EBIT and a modestly higher tax rate.”
Shares of Owens Corning (NYSE:OC) traded down 1.03% during mid-day trading on Monday, hitting $37.41. 2,401,839 shares of the company’s stock traded hands. Owens Corning has a 52-week low of $29.48 and a 52-week high of $45.55. The stock’s 50-day moving average is $38.60 and its 200-day moving average is $40.34. The company has a market cap of $4.404 billion and a P/E ratio of 68.60.
Owens Corning (NYSE:OC) last announced its earnings results on Wednesday, October 23rd. The company reported $0.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.66 by $0.13. The company had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter in the previous year, the company posted $0.33 earnings per share. The company’s revenue for the quarter was up 3.4% on a year-over-year basis. Analysts expect that Owens Corning will post $1.76 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Bank of America Corp. downgraded shares of Owens Corning from a “buy” rating to a “neutral” rating in a research note to investors on Monday. They now have a $40.00 price target on the stock, down previously from $43.00. Separately, analysts at Zacks downgraded shares of Owens Corning from a “neutral” rating to an “underperform” rating in a research note to investors on Friday. They now have a $35.90 price target on the stock. Finally, analysts at RBC Capital cut their price target on shares of Owens Corning from $47.00 to $42.00 in a research note to investors on Thursday. They now have a “sector perform” rating on the stock. One analyst has rated the stock with a sell rating, ten have given a hold rating and ten have given a buy rating to the company’s stock. Owens Corning presently has an average rating of “Hold” and a consensus price target of $40.05.
Owens Corning is engaged in composite and building materials systems, delivering a range of products and services.
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