KeyBanc Starts Bemis (BMS) at Hold; Defensive Stock, But Trading Above Historical Averages

KeyBanc initiates coverage on Bemis (NYSE: BMS) with a Hold.

Analyst, Adam J. Josephson, said, "We are initiating coverage of Bemis with a HOLD rating, as we find the steady free cash flow characteristics of this business (and the resulting 3.2% dividend yield) attractive but are concerned about a number of fundamental challenges: weak volume trends in the U.S. packaged food industry; weak volume trends in the high margin piece of its Pressure Sensitive Materials business; and its exposure to resin prices, which in recent years have become increasingly volatile...The stock is trading above its historical average multiples on our estimates."

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

Shares of Bemis closed at $30.92 yesterday.

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