UPDATE: Barclays Reiterates Berry Plastics Group at Equal-Weight Post Q4 Results
Barclays reiterated its view on Berry Plastics Group (NYSE: BERY) with a Buy rating and a $16 price target.
Barclays commented, "We think acceleration of organic growth or a visible path to higher organic growth is needed for the stock to achieve a premium multiple versus peers. Near-term value tied to deleveraging story which is ahead of plan, but likely not enough to get noticed in the current environment. Berry Plastics Group closed at $14.75 on Tuesday. … Consistent FCF generation could allow for faster-than-expected balance sheet deleveraging: Management is targeting a .5x annual reduction in leverage which equates to ~$3 of shareholder value. If organic growth accelerates and operating margins continue to expand, debt deleverage could occur sooner than expected leading to multiple expansion and better-than-expected shareholder appreciation."
Berry Plastics Group closed at $14.75 on Tuesday.
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