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UPDATE: Bank of America Downgrades Owens Corning on Reduced Estimates, Lack of Upside

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In a report published Monday, Bank of America analyst George L. Staphos downgraded the rating on Owens Corning (NYSE: OC) from Buy to Neutral, and lowered the price target from $43.00 to $40.00.

In the report, Bank of America noted, “We move to Neutral on OC. Our new PO is $40, which does not offer sufficient upside to keep our Buy rating. In turn, as we discuss below, our estimates are reduced once again which causes us to lower our normalized free cash flow (FCF) estimate (to $500mn from $600mn) and our targeted midcycle multiples by 1x. Ultimately, we believe OC should have leverage to a recovering housing sector.”

Owens Corning closed on Friday at $37.80.

Latest Ratings for OC

DateFirmActionFromTo
Sep 2016Wells FargoInitiates Coverage onMarket Perform
Sep 2016Bank of AmericaInitiates Coverage onNeutral
Aug 2016Credit SuisseInitiates Coverage onUnderperform

View More Analyst Ratings for OC
View the Latest Analyst Ratings

Posted-In: Bank of America George L. StaphosAnalyst Color Downgrades Analyst Ratings

 

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