Wells Fargo Reaffirms Buy on Owens Corning (OC) Amid Profitable Growth Outlook

Owens Corning (NYSE:OC) is one of the 10 most undervalued industrial stocks to buy according to analysts. The company is driving growth by focusing on manufacturing long-term, sustainable building products through material innovation. Over the past five years, the company has grown its revenue at a compounded annual growth rate (CAGR) of approximately 9%.

The company also boasts an above peers-average adjusted EBITDA margin (reached ~25% by FY 2024), which has enabled it to generate free cash flows of over $1.1 billion over the last four years. The management is also positioning the company for substantial growth over the next 3-4 years, as it plans to achieve $12.5 billion in revenue by 2028 (versus $10.6 billion in FY 2024), while maintaining a mid-20% adjusted EBITDA margin.

A team of construction workers installing a roof with asphalt shingles.

Corroborating a positive outlook for the company, Wells Fargo analyst Sam Reid reiterated a Buy rating on Owens Corning on June 10 with an unchanged price target of $160. In mid-May, Reid had raised his price target on the shares, from $150 to $160, encouraged by the company’s clear financial goals through 2028, which aim to achieve revenue growth primarily through higher volumes and selective price increases. The analyst appreciated the company’s disciplined cost control and stable profitability, as well as its target to maintain strong EBITDA margins in both Roofing and Insulation.

Reid also believed that growing housing demand, ongoing contractor partnerships, and recent investments in insulation capacity support the company’s outlook. While some investors remain cautious, Reid believes the company’s current valuation and strategic direction make a strong case for long-term upside, supporting the Buy rating.

Owens Corning (NYSE:OC) is a global provider of residential and commercial building products.

While we acknowledge the potential of OC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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