Evercore ISI cuts Owens Corning target to $160 from $185

On Thursday, Evercore ISI adjusted its price target for Owens Corning (NYSE:OC) shares, bringing it down to $160 from the previous target of $185. The firm’s analysts have chosen to maintain an In Line rating for the stock. The revision follows Owens Corning’s recent financial results, which showed alignment with expected revenues and an outperformance on earnings. According to InvestingPro data, the stock currently trades at $130.40, having fallen over 10% in the past week and nearly 31% over the last six months. The company maintains strong financial health with a "GOOD" overall score from InvestingPro’s comprehensive analysis.

Owens Corning’s report highlighted a challenging environment in several end markets, particularly noting the pressure in the North American residential insulation market. This is partly due to an uncertain macroeconomic landscape. The company also discussed the effects of tariffs on its Doors and Insulation segments. Specifically, the Doors segment is navigating through the complexities of cross-border product movements into Canada, which have been affected by reciprocal tariffs. The Insulation segment has seen some impact from tariffs on certain chemical imports from China, although the overall effect is anticipated to be limited. Despite these challenges, InvestingPro data shows the company maintains a healthy current ratio of 1.47, with liquid assets exceeding short-term obligations.

The company’s performance and outlook indicate a mixed market situation. Evercore ISI pointed out the uncertainty in the residential remodeling market’s direction, as it may experience a delayed response to slower construction starts and the influence of tariffs, which could pose short-term challenges.

Despite these headwinds, Evercore ISI is keeping its In Line rating, suggesting that the firm’s stance on Owens Corning’s stock remains neutral. The analysts have not altered their overall assessment of the company’s stock, even as they acknowledge the current market conditions and external pressures that Owens Corning faces.

Investors are now equipped with Evercore ISI’s latest insights on Owens Corning, as the company navigates through a complex market with both internal and external factors at play. The revised price target reflects the firm’s current evaluation of these conditions and their potential impact on the company’s future performance.

In other recent news, Owens Corning reported its Q1 2025 earnings, exceeding analyst expectations with an earnings per share (EPS) of $2.97 compared to the forecast of $2.91. The company also surpassed revenue projections, bringing in $2.53 billion against the anticipated $2.51 billion. Despite these strong financial results, the company faced a 5.63% drop in its stock during pre-market trading due to broader market concerns and specific company challenges. Owens Corning continues to focus on strategic expansions, particularly in its roofing and insulation segments, while navigating mixed market conditions in North America and Europe. The company maintains a strong competitive position with adjusted EBITDA margins remaining above 20% for the 19th consecutive quarter. Owens Corning’s liquidity at the end of the quarter stood at $1.9 billion, with $159 million returned to shareholders through repurchases and dividends. Looking ahead, the company expects Q2 revenue to grow in the high single digits, despite anticipating a modest $10 million impact from tariffs. The company remains committed to strategic investments and cost optimization to drive future growth.

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