Piper Jaffray Remains Bullish on Libbey (LBY) Following Recent Pullbacks

Piper Jaffray reiterated an Overweight rating and $48.00 price target on Libbey Inc (NYSE: LBY) on recent pullbacks. Analyst Stephanie Wissink would be a buyer of LBY, seeing the recent pullback as an attractive entry point.

Wissink commented, "We are buyers of LBY shares seeing the pullback as a compelling entry point. LBY is still the early stages of a significant transformation. Our meetings with management this week reinforced that the company is on track to deliver on its mid-single digits sales growth and 17%-18% multi-year margin targets. Having spent the last several years aligning the cost model, deleveraging the balance sheet and enhancing human capital, the company is now focused on driving EBIT margin expansion through new product lines, segments and channels. A reliance on consumer insights to guide product innovation and marketing support are transforming the company into a competitive consumer goods organization. We believe shares should graduate higher along a valuation curve that is more consumer products-like (vs manufacturer) as quarter to quarter performance ties more consistently to retail and food service end market demand. Our $48 PT is based on 10x FY16E EV/EBITDA."

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 $33.81 yesterday.

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