UPDATE: KeyBanc Downgrades Silgan Holdings to Hold on Core Can Packaging Challenges
KeyBanc downgraded Silgan Holdings (NASDAQ: SLGN) from Buy to Hold.
KeyBanc said, "we are downgrading Silgan Holdings Inc. (SLGN-NASDAQ) from BUY to HOLD owing to our concern that the Company's core metal food can business could continue to experience difficulties in the quarters to come. Issues that affected this business in 2012 included ongoing weakness in Europe and (we believe) in U.S. canned soup consumption and unusually hot weather in the Midwest, and we think some of these issues could remain problematic in 2013. Furthermore, the substantial gains that SLGN reaped from acquiring its customers' can-making assets in the United States are largely behind the Company now that few self-manufacturers remain, and as a consequence, we think the Company could have a more difficult time creating value from acquisitions."
Silgan Holdings closed at $42.67 on Wednesday.
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