UPDATE: KeyBanc Capital Markets Downgrades Owens Corning on Multiple Negative Factors

In a report published Monday, KeyBanc Capital Markets analyst Kenneth R. Zener downgraded the rating on Owens Corning OC from Buy to Hold, and removed the $51.00 price target. In the report, KeyBanc Capital Markets noted, “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.” Owens Corning closed on Friday at $37.80.