Why Masonite International Stock Is Surging Higher Today
Owens Corning (NYSE: OC) has agreed to acquire door marker Masonite International (NYSE: DOOR) for a substantial premium to where Masonite has been trading. Investors are celebrating their good fortune, with shares of Masonite up 35% as of 12:30 p.m. ET on Friday.
Owens Corning is a maker of a range of building and construction materials, including roofing, insulation, and composites. In Masonite, a maker of interior and exterior doors, Owens Corning sees an opportunity to expand its relationships in the construction industry and create a new growth platform catering to residential builders.
The buyer is paying up for the privilege. Terms of the deal call for Owens Corning to pay $133 per share in cash for Masonite, a premium of 38% to the target's Feb. 8 close and 46% to its 20-day volume-weighted average price. The deal values Masonite at about $3.9 billion, or about 8.6 times expected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Source Fool.com
Corning Inc. Stock
With 14 Buy predictions and only 2 Sell predictions the community sentiment for the stock is positive.
With a target price of 40 € there is a slightly positive potential of 1.34% for Corning Inc. compared to the current price of 39.47 €.
