Barclays analyst Matthew Bouley sees a favorable risk/reward for Owens Corning into its Q4 results following his "positive" insulation distributor checks. While ARMA data driving potential upside to Q4 is now well-appreciated, price realization in Insulation is an incremental positive supporting 2019 estimates, Bouley tells investors in a pre-earnings research note. The analyst also believes Owens shares do not fully reflect the potential benefits of lower asphalt prices, which he thinks "lend support in light of broader demand uncertainty." He keeps an Overweight rating on Owens Corning with a $58 price target.

Argus raised the firm's price target on Owens Corning to $182 from $175 and keeps a Buy rating on the shares. The analyst cites the company's Q1 earnings beat while noting that the composite and building materials demand is impacted by the changes in the housing and construction markets which have been strong in recent quarters. Argus adds that the company's balance sheet is clean, and the management has recently hiked the dividend by 15%, signaling confidence in the outlook and a commitment to shareholder returns.

RBC Capital raised the firm's price target on Owens Corning to $192 from $175 and keeps an Outperform rating on the shares. The company's Q1 results saw another strong margin result in Roofing, with incremental pricing gains in Roofing/Insulation driving further upside while more than offsetting ongoing Composites weakness, the analyst tells investors in a research note. RBC adds that it continues to see strength supported by lean channel inventories and solid sell-through even as comps become more difficult.

Sees Q2 EBIT margin 20%. Sees FY24 effective tax rate 24%-26%.

Sees FY24 interest expense $70M-$80M; effective tax rate on adjusted earnings 24%-26%; capital additions $550M; and depreciation and amortization $550M.