UPDATE: UBS Raises PT to $11 on Cott on Improving Margins and Free Cash Flows
UBS reiterated its Buy rating on Cott (NYSE: COT) and increased its price target from $10 to $11.
UBS noted, "We do not believe that COT is trading in-line with its ability to consistently generate FCF. We are raising our EPSe to account for debt paydown (lower interest). Following the debt paydown, during which they can pay dividend and repurchase shares, we assume bigger buybacks. In the interim, Cott's margin profile should improve as efficiencies are realized and cost inflation moderates."
Cott closed at $8.10 on Friday.
Latest Ratings for COT
|Feb 2015||JP Morgan||Maintains||Neutral|
|Feb 2015||Stifel Nicolaus||Upgrades||Hold||Buy|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.