UPDATE: Credit Suisse Upgrades Owens Illinois To Outperform
Credit Suisse is upgrading shares of Owens Illinois (NYSE: OI) to Outperform from Neutral. It is also raising the target price by $4, to $36. Although the shares have risen by 8.7% since October 7th, 2010, they have underperformed the S&P 500 by 4.8%. The upgrade reflects both the shares' increasingly attractive valuation as well as what Credit Suisse sees as building positive momentum, particularly in volume growth and from favorable currencies.
Mainly due to slightly higher volume growth assumptions, Credit Suisse is raising its 2011 and 2012 estimates by $0.10 and $0.15, respectively, to $2.95 and $3.55. Its 2013 number also rises to $3.95 from $3.80. Credit Suisse also notes that the recent decline in the value of the US dollar also is a boost to earnings.
OI is trading higher at $30.57
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