Hurricane Harvey is a disastrous development that no sane person would have ever hoped for. But amid the chaos, some analysts are finding the silver lining.
For instance, Wells Fargo analyst Stephen East upgraded Owens Corning (OC) to outperform from market perform. East also assigned an $83 price target, which is a little more than $11 per share from its most recent closing price of $71.76. OC stock is already up more than 39% on the year, and East's new price target implies about 15% more upside from here.
It appears to be no secret to Wall Street, though. Shares are up 6.75% over the past month, and OC stock has generated a 5% return over the past five trading sessions.
So how exactly does Owens Corning see more business from Harvey? East makes the case that the company's roofing business and its insulation replacement business should certainly benefit. Outside of Hurricane Harvey though, East argues that OC stock has a low valuation vs. its peers and can generate big free-cash flow results for the next few years.
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Alongside a stronger-than-expected GDP result, TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, also said Owens Corning should benefit from rebuilding efforts in Texas. He also named Weyerhaeuser Co (WY) and US Concrete Inc (USCR) as two other beneficiaries.
USCR could also benefit if President Trump finds a way to build his wall.
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