UPDATE: Goldman Sachs Downgrades AptarGroup to Sell

Goldman Sachs reduced its rating on AptarGroup ATR from Neutral to Sell and lowered its price target from $49 to $48 on sluggish volume outlook and relative valuation. Goldman Sachs noted, "While ATR has a long track record of EPS growth and cost of capital returns, we believe the stock will underperform over the next 12 months given (1) we think organic volume likely turned negative in its Beauty + Home segment (66% revenues) during 2Q2012, (2) 57% of ATR's revenues (about 44% of end-demand) is in Europe vs. peers of 25%, on average, and (3) relative valuation. On lower estimates, our 12-month, multiples-based price target goes to $48 from $49, and we see 4% downside to our price target for ATR vs. +7%, on average, for our Specialty Packaging coverage." AptarGroup closed at $49.78 on Monday.