UPDATE: Jefferies Initiates Coverage on Owens Corning with Buy Rating, $55 PT on Most Compelling Risk/Reward

In a report published Thursday, Jefferies analyst Philip Ng initiated coverage on Owens Corning OC with a Buy rating and $55.00 price target. In the report, Jefferies noted, “We are initiating coverage on OC with a Buy, and believe it has the most compelling risk reward in the group with shares trading at a 25% discount to the sector. With the issues in Composites resolved and good operating leverage in Insulation, the company is well positioned heading into 2014. Further, with its balance sheet in good shape and ~100% FCF conversion rate, we believe OC will return cash back to shareholders in 2014.” Owens Corning closed on Wednesday at $39.20.