J.P. Morgan Downgrades Pactiv Corp. to Neutral (PTV)

J.P. Morgan is out with a research report this morning, where it downgrades shares of Pactiv Corp.

to Neutral, from Overweight; it has a $33.00 price target on the stock, down from $35.00. The JPM analyst said that they see limited upside in the shares following Tuesday’s announcement that the company agreed to be acquired by Reynolds for $33.25 per share. After the deal was announced, shares of PTV subsequently closed up 5%, just 2% below the bid price. The JPM analyst said that they do not see a higher bid coming, given that Reynolds has committed financing, which consists of equity and debt. They expect the deal to close by the end of 2010.