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

Owens Corning (NYSE:OC) is one of the most undervalued NYSE stocks to buy right now. On November 11, JPMorgan lowered the firm’s price target on Owens Corning to $113 from $157 with a Neutral rating on the shares. This sentiment was announced as the company posted its Q3 2025 earnings report, after which the firm reduced its estimates. JPMorgan noted that the company’s Q4 will be impacted by continued weak demand and inventory destocking.

In the third quarter, Owens Corning reported generating $2.7 billion in revenue and $638 million in adjusted EBITDA, achieving a strong 24% margin. These results reflect significant structural improvements, with both the roofing and insulation businesses improving their margins by over 5% compared to similar market conditions over the past decade.

Owens Corning is investing in growth, including a new plant in Alabama for laminate shingles and a new fiberglass line in Kansas City to enhance production capabilities. However, the company faced several headwinds, primarily from weakening residential trends in the US and a quiet storm season. The roofing business was negatively impacted by having no named storms make landfall in the US during Q3, which led to lower storm-related demand. This reduced storm activity, combined with market inventory corrections, is estimated to account for about half of the expected year-over-year revenue decline in roofing for Q4.

Owens Corning (NYSE:OC) provides residential and commercial building products in the US, Europe, the Asia Pacific, and internationally. It operates through 4 segments: Roofing, Insulation, Doors, and Composites.

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Disclosure: None. This article is originally published at Insider Monkey.