NEW YORK (AP) — Shares of Owens Corning declined Friday as an analyst lowered the company's rating and price target partly due to some concerns about its roofing business.
THE SPARK: Will Randow of Citi Investment Research cut Owens Corning to "Neutral" from "Buy" and reduced its price target to $43 from $48.
Owens Corning, based in Toledo, Ohio, makes insulation, composites and roofing materials.
THE ANALYSIS: Randow said in a client note that he is concerned that the favorable competitive climate that Owens Corning's roofing business is currently experiencing may temporarily weaken during the second half of the year. The analyst points out that the company's roofing business produced 84 percent of its earnings before interest and taxes over the past two years and has become a key component that he's looked at when assessing the company.
Randow said that his rating cut was also partly because the stock has outperformed the median of its peers since the middle of April.
A representative for Owens Corning did not immediately respond to an email seeking comment.
SHARE ACTION: Down $1.53, or 3.7 percent, to $39.58 in morning trading. The stock has traded in a 52-week range of $25.70 to $45.55. For the year to date, the shares are up 11 percent.