UPDATE: JP Morgan Upgrades Bemis to Overweight on Easier Comps

JP Morgan upgraded Bemis Company, Inc.

from Neutral to Overweight and raised the price target from $38.00 to $39.00. JP Morgan commented, "We upgrade shares of BMS to Overweight from Neutral, as the combination of improving food end markets against easier comps and execution on cost savings initiatives make valuation look compelling on both an EV/EBITDA and FCF yield basis on our raised numbers. Despite a solid 3Q, we think the bar is still fairly low for BMS; and, we think it now has the greatest potential in the packaging group to show upward estimate revisions over the next several quarters. Further, with leverage coming down to comfortable levels (2.0x target by 2H13), capital allocation could be another lever to pull, around which we think investors would like to see more aggressive return of capital to shareholders." Bemis closed at $33.93 on Tuesday.