UPDATE: Jefferies Reduces PT to $48 on Ball Corporation; CSD Demand Soft
Jefferies reiterated its Buy rating on Ball Corporation (NYSE: BLL) but reduced its price target from $49 to $48 on checks indicating CSD demand has seen softness.
Jefferies noted, "[W]ith April and May being one of the wettest and coolest springs in Europe in years, our checks indicate CSD demand has been soft, but beer is holding up fairly well. Additionally, with demand in Brazil softening as well (flat volumes YTD), we are trimming our EPS estimates for 2012 from $3.10 to $3.05 and baking in some share leakage in its N.A. bev can business in 2013 (lowering to $3.39 from $3.65). We are reducing our price target to $48, which is based 8.8x 2012E EV/EBITDA."
Ball Corporation closed at $40.38 on Wednesday.
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