UPDATE: KeyBanc Downgrades Owens Corning to Hold on Near-Term Volatility, Valuation
KeyBanc downgraded Owens Corning (NYSE: OC) from Buy to Hold and removed the $37.00 price target.
KeyBanc commented, "Owens Corning (OC-NYSE) diversified portfolio should benefit from the U.S. housing recovery, but amid high cyclical growth expectations, partly tied to two separate price announcements, and past margin volatility, we are downgrading OC to HOLD. … The OC stock move from early December was both sector-driven and company-specific, in our view, with two separate 10% price announcements for: 1) insulation, effective December 17; and 2) asphalt shingles, effective February 1. We think OC's 2013 guidance will reflect the majority of these announcements sticking, but that high growth expectations, combined with OC's past margin volatility, support our valuation downgrade."
Owens Corning closed at $42.16 on Wednesday.
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