Wells Fargo reaffirms purchases at Owens Corning (OC) amid profitable growth outlook
Owens Corning (NYSE:oc) is one of According to analysts, the 10 most underrated industrial stocks to buy. The company is driving growth by focusing on the production of long-term and sustainable building products through material innovation. Over the past five years, the company has increased its revenues at a combined annual growth rate (CAGR) of approximately 9%.
The company also boasts the above average adjusted EBITDA margin (which reached approximately 25% by fiscal year 2024). This has generated more than $1.1 billion in free cash flow over the past four years. Management also plans to achieve revenue of $12.5 billion by 2028, so they position the company to grow significantly over the next three to four years ($10.6 billion in 2024).
A team of construction workers installing roofs with shingles of asphalt.
Wells Fargo analyst Sam Reid supports the company’s positive outlook, repeatedly rated Owens Corning’s purchases on June 10th, achieving its unchanged price target of $160. In mid-May, Reed raised the stock price target from $150 to $160, encouraged by the company’s clear financial goals through 2028. Analysts appreciated the company’s goal of maintaining a strong EBITDA margin on both the roof and insulation.
Reed also believed that growing housing demand, ongoing contractor partnerships and recent investments in insulation capabilities would support the company’s outlook. While some investors remain cautious, Reid believes the company’s current valuation and strategic direction strongly advocates long-term benefits and supports purchase ratings.
Owens Corning (NYSE:OC) is a global provider of residential and commercial building products.
Although we acknowledge the potential of OC investments, we believe certain AI stocks offer greater promotion potential and pose a risk of decline. If you’re looking for a highly undervalued AI stock that can make a significant profit from the tariff and supervision trends of the Trump era, check out our free report. Best Short-Term AI Stocks.
Read next: Best and worst dowstock for the next 12 months and Best tech stocks to buy according to the billionaire.
Disclosure: None.