Wells Fargo analyst Stephen East last night upgraded Owens Corning (OC) to Outperform from Market Perform with an $83 price target.
The glass fiber maker closed yesterday up $1.57 to $71.76. The analyst sees an “inexpensive valuation” versus peers and has increased comfort in Owens’ ability to achieve or surpass this year’s targets while generating “substantial” free cash flow over the next several years after spending time with management.
Hurricane Harvey is a boost to the company’s roofing business, but its insulation replacement “may be the bigger winner,” East tells investors in a research note.
