Truist Securities lowers Owens Corning stock price target on roofing weakness

Published 09/10/2025, 14:56
Truist Securities lowers Owens Corning stock price target on roofing weakness

Investing.com - Truist Securities reduced its price target on Owens Corning (NYSE:OC) to $135.00 from $165.00 on Thursday, while maintaining its Hold rating on the building materials manufacturer. The stock, currently trading at $131.60, has declined over 20% year-to-date, though InvestingPro data indicates the company maintains strong financial health with a "GOOD" overall rating.

The downward revision reflects weakness in roofing volumes in recent months, according to the research firm. Truist Securities attributed the slowdown to a lack of strong storm activity and weaker new construction demand. Despite these challenges, the company maintains a healthy 2.06% dividend yield and has raised its dividend for seven consecutive years, according to InvestingPro analysis.

The firm expressed concerns that winter months will likely see inventory reductions in distribution channels, which would negatively impact production at Owens Corning’s manufacturing facilities.

Pricing pressure is also expected as the industry readjusts to proper levels ahead of the 2026 season, further challenging the company’s performance in the near term.

Truist Securities maintained its Hold rating on Owens Corning stock as these market conditions play out, indicating a neutral stance on the company’s shares at current levels.

In other recent news, Owens Corning reported better-than-expected earnings for the second quarter of 2025, with earnings per share reaching $4.21, above the forecast of $3.82. The company’s revenue also surpassed expectations, totaling $2.75 billion compared to the projected $2.71 billion. Despite these positive results, BofA Securities lowered its price target for Owens Corning to $168 from $180, citing a weaker outlook for roofing volumes, which are now expected to decline by 4% in 2025. Additionally, Owens Corning announced a quarterly cash dividend of $0.69 per share, payable on November 6, 2025, to shareholders recorded by October 20, 2025. UBS, on the other hand, maintained a Buy rating with a $210 price target, highlighting the company’s strong execution in the second quarter and a promising third-quarter outlook. The company is anticipating a $50 million gross impact from tariffs in the third quarter but plans to mitigate most of this, resulting in a net impact of about $10 million. These developments reflect a mix of positive earnings performance and cautious future projections for Owens Corning.

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