UBS reiterates Buy rating on Owens Corning stock with $210 price target

Published 19/08/2025, 13:28
UBS reiterates Buy rating on Owens Corning stock with $210 price target

Investing.com - UBS maintained its Buy rating on Owens Corning (NYSE:OC) with a price target of $210.00, citing the company’s strong execution in the second quarter and better-than-expected third-quarter outlook for 2025. The company, currently valued at $12.53 billion, has caught analysts’ attention with 9 experts recently revising their earnings estimates upward according to InvestingPro data. The stock currently trades at $149.85, suggesting potential upside based on UBS’s target.

The company expects a $50 million gross impact from tariffs in the third quarter but plans to mitigate most of this headwind, resulting in a net impact of approximately $10 million, primarily affecting its Doors segment. Mitigation strategies include building inventory ahead of tariffs, product re-sourcing, and selective pricing decisions.

Owens Corning anticipates the net impact from tariffs to increase quarter-over-quarter in the fourth quarter as the company works through the lower-cost inventory built ahead of tariffs in the third quarter. The company continues to expect the sale of its Glass Reinforcements business to close in the second half of 2025, likely in the fourth quarter, as it navigates the regulatory approval process.

The negative mix in the Insulation segment during the second quarter was attributed to the timing of projects on a year-over-year basis, but this trend is not expected to continue. UBS views the overall performance as demonstrating the strength of the "new Owens Corning" following recent strategic changes.

The firm’s $210 price target represents potential upside for Owens Corning stock, which has been adjusting to both industry headwinds and the company’s ongoing strategic initiatives.

In other recent news, Owens Corning reported its financial results for the second quarter of 2025, revealing stronger-than-expected earnings. The company achieved earnings per share of $4.21, surpassing the analysts’ forecast of $3.82. Revenue also exceeded expectations, reaching $2.75 billion compared to the projected $2.71 billion. These results indicate a solid performance for the quarter. Despite the positive earnings and revenue figures, Owens Corning’s stock experienced a decline in aftermarket trading. Investors seem to be exercising caution due to mixed guidance for future quarters. The company’s financial performance remains a focal point for stakeholders and analysts alike.

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