JPMorgan Cautious on Owens Corning (OC) Due to Weak Demand, Inventory Destocking Impact on Q4

Owens Corning (NYSE:OC) is 1 of the most undervalued NYSE stocks to bargain close now. On November 11, JPMorgan lowered the firm’s terms people connected Owens Corning to $113 from $157 with a Neutral standing connected the shares. This sentiment was announced arsenic the institution posted its Q3 2025 net report, aft which the steadfast reduced its estimates. JPMorgan noted that the company’s Q4 volition beryllium impacted by continued anemic request and inventory destocking.

In the 3rd quarter, Owens Corning reported generating $2.7 cardinal successful gross and $638 cardinal successful adjusted EBITDA, achieving a beardown 24% margin. These results bespeak important structural improvements, with some the roofing and insulation businesses improving their margins by implicit 5% compared to akin marketplace conditions implicit the past decade.

Owens Corning is investing successful growth, including a caller works successful Alabama for laminate shingles and a caller fiberglass enactment successful Kansas City to heighten accumulation capabilities. However, the institution faced respective headwinds, chiefly from weakening residential trends successful the US and a quiescent tempest season. The roofing concern was negatively impacted by having nary named storms marque landfall successful the US during Q3, which led to little storm-related demand. This reduced tempest activity, combined with marketplace inventory corrections, is estimated to relationship for astir fractional of the expected year-over-year gross diminution successful roofing for Q4.

Owens Corning (NYSE:OC) provides residential and commercialized gathering products successful the US, Europe, the Asia Pacific, and internationally. It operates done 4 segments: Roofing, Insulation, Doors, and Composites.

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