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
The stock is an absolute favorite of our community with 35 Buy predictions and no Sell predictions.
As a result the target price of 184 € shows a positive potential of 28.38% compared to the current price of 143.32 € for Corning Inc..
