UPDATE: Piper Jaffray Starts Libbey Inc (LBY) at Overweight

Piper Jaffray initiated coverage on Libbey Inc (NYSE: LBY) with an Overweight rating and a price target of $48.00.

Analyst Stephanie Wissink commented, "We are initiating coverage with an Overweight rating and $48 PT based on 9.5x FY16E EV/EBITDA. Our investment thesis is based on stock price appreciation potential from a series of profit-enhancing fundamental opportunities, a return to growth, and evolution from an industrial to consumer goods company, justifying a higher multiple. We are attracted to the innovation and growth potential in both the food service and consumer segments of the business, with evidence in our own proprietary studies of a significant millennial-inspired demand curve. We think +MSD topline growth coupled with margin mix improvement and cost leverage justifies estimates of low-teens EPS growth. Peers with similar growth characteristics are trading at 3x-4x higher multiples. We think LBY is well positioned to close that valuation gap over the next 12 months."

For an analyst ratings summary and ratings history on Libbey Inc click here. For more ratings news on Libbey Inc click here.

Shares of Libbey Inc closed at $40 yesterday.

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