Wedbush Downgrades Owens Corning (OC) to Neutral

Wedbush downgraded Owens Corning (NYSE: OC) from Outperform to Neutral with a price target of $35.00 (from $43.00). Analyst Al Kaschalk said its margin expansion story is "extended."

"When we initiated on Owens Corning, our investment thesis was that the company would expand margins and deliver accelerated earnings and cash flow, led by its Roofing segment. While weather late in Q4:CY13 and Q1:CY14 drove pent-up demand, aiding volume recovery in Q2, management was fairly confident a third quarter price increase would materialize. However, with a competitor dropping prices and a challenging roofing environment, OC took reactive measures from a pricing standpoint during Q3, minimalizing any benefit from its July price increase. With price concessions expected to continue, we expect margin pressure to continue. As a result, we are downgrading shares of OC to NEUTRAL from OUTPERFORM," said Kaschalk.

For an analyst ratings summary and ratings history on Owens Corning click here. For more ratings news on Owens Corning click here.

Shares of Owens Corning closed at $29.93 yesterday.

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