Morgan Stanley Starts Ardagh Metal Packaging S.A. (AMBP) at Underweight 'due to the company's challenged cash flow profile'

Morgan Stanley analyst Pamela Kaufman initiates coverage on Ardagh Metal Packaging S.A. (NYSE: AMBP) with a Underweight rating and a price target of $3.20.

The analyst comments "Ardagh Metal Packaging is a pure play global beverage can company within the oligopoly. The company's #2/#3 market positions in key geographies position it to benefit from secular ESG growth trends that favor the can industry. AMBP offers solid volume and EBITDA growth prospects of ~3%/6% on average in 2024-26, but we believe the shares are likely to underperform due to the company's challenged cash flow profile. In particular, AMBP is burdened by a highly levered balance sheet at 5.5x LTM net debt/ EBITDA, elevated interest expense, and sizable dividend commitments to its parent company, which limit its financial flexibility. Our $3.20 PT is based on a 9x 204e EV/ EBITDA, in-line with AMBP's average valuation."

For an analyst ratings summary and ratings history on Ardagh Metal Packaging S.A. click here. For more ratings news on Ardagh Metal Packaging S.A. click here.

Shares of Ardagh Metal Packaging S.A. closed at $3.47 yesterday.

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