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Investing.com - BofA Securities lowered its price target on Owens Corning (NYSE:OC) to $168 from $180 on Wednesday, while maintaining a Buy rating on the building materials manufacturer. Currently trading at $141.46, the stock sits below analyst targets ranging from $157 to $210. According to InvestingPro analysis, Owens Corning appears undervalued based on its Fair Value calculation.
The price target reduction reflects BofA’s revised forecast for Owens Corning’s roofing volumes, now expected to decline 4% year-over-year in 2025, compared to its previous projection of 1% growth.
BofA anticipates a more pronounced high-single digit percentage decline in ARMA roofing shipments during the second half of 2025, with the steepest drop occurring in the fourth quarter, due to reduced storm-related demand compared to prior years.
According to 2025 NOAA data through September, recorded storm events have decreased approximately 22% year-over-year, and Owens Corning faces difficult comparisons against 2024, when Hurricanes Helene and Milton drove increased replacement shingle demand across the Southeast.
Despite these headwinds, BofA expects Owens Corning to outperform the industry, citing increased laminate shingle production at its Medina, Ohio facility, solid backlog in its contractor program, and normalizing attachment rates for components. InvestingPro reveals management’s aggressive share buyback program and strong cash position, with liquid assets exceeding short-term obligations. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.
In other recent news, Owens Corning reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $4.21, compared to the forecast of $3.82. The company’s revenue also exceeded projections, reaching $2.75 billion against an anticipated $2.71 billion. Despite these strong financial results, Owens Corning’s stock experienced a decline in aftermarket trading. UBS has reiterated its Buy rating on Owens Corning, setting a price target of $210, highlighting the company’s robust performance in the second quarter and a positive outlook for the third quarter of 2025. Owens Corning anticipates a gross impact of $50 million from tariffs in the third quarter but plans to mitigate this to a net impact of approximately $10 million, mainly affecting its Doors segment. The company aims to counteract these tariffs through strategies such as building inventory, product re-sourcing, and selective pricing. Additionally, Owens Corning announced a quarterly cash dividend of $0.69 per share, payable in November 2025. These developments reflect the company’s ongoing efforts to manage external challenges while delivering strong financial performance.
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