Disc Medicine (IRON) PT Lowered to $71 at Stifel

Stifel analyst Ben Burnett lowered the price target on Disc Medicine (NASDAQ: IRON) to $71.00 (from $104.00) while maintaining a Buy rating.

The analyst comments "We increase our 12-month target by $11 to $78, or 22.9x our 2024 EPS estimate. Our assumed P/E is a premium to BALL's three-year average forward P/E of 19.6x, which we think is warranted by the rebound in demand for aluminum cans, following an extended period of inventory destocking. We raise our 2024 EPS estimate by $0.14 to $3.40 and our 2025 EPS forecast by $0.19 to $3.85. Our confidence level in BALL's earnings growth outlook has improved; we expect the drag on earnings from BALL's recent divestiture of its aerospace business to be fully offset by share buybacks and lower interest expense. BALL is planning to spend around $2 billion of the proceeds from the aerospace divestiture to reduce debt and approximately $2 billion for a share repurchase program. With a more focused strategy on the core beverage-can business, we think BALL is poised to increase free cash flow, as capex should be reduced to around $600 million in 2024 and 2025, down from $1 billion in 2023 and $1.7 billion in both 2022 and 2021."

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