UPDATE: Bank of America Downgrades Owens Corning on Reduced Estimates, Lack of Upside
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
|Aug 2016||Credit Suisse||Initiates Coverage on||Underperform|
|Jul 2016||FBR Capital||Maintains||Market Perform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.