'O-I Glass Inc. (OI) Is One of our Favorite Ideas in Packaging'; PT Raised at Truist

Truist Securities analyst Michael Roxland raised the price target on O-I Glass Inc. (NYSE: OI) to $21.00 (from $17.00) while maintaining a Buy rating.

The analyst commented: "OI is one of our favorite ideas in Packaging given continued self-help and cost-take out with the company exceeding its own targets last year. OI is in the midst of an operational and cultural overhaul designed to significantly improve profitability where every aspect of the business is scrutinized as to the value it affords with the goal being to create a more profitable, focused, and structurally competitive company. Over the next two years, EBITDA and EPS should be driven by further cost-take out, as OI’s forecast does not embed any volume recovery, with any potential market/demand recovery serving as tailwinds. We also prefer BALL given volume growth in North America due to a favorable customer mix and business wins and Europe given the recent Benepack (private) acquisition, and new management and a renewed focus on improving operations and profitability, especially in North America. We believe BALL is in a position to generate $1bn+ of FCF per year for the next few years and therefore should be able to continue to repurchase a significant amount of shares especially as leverage remains low."

You May Also Be Interested In

• Bernstein SocGen Group Starts Terawulf Inc. (WULF) at Outperform
• FG Merger II sets stockholder vote on BOXABL merger for June 9
• Genco Shipping urges shareholders to reject Diana's $24.80 takeover bid