UPDATE: Jefferies Downgrades Ball Corporation to Hold on Valuation
Jefferies downgraded Ball Corporation (NYSE: BLL) from Buy to Hold and maintained a $49.00 price target.
Jefferies commented, "Ball is one of the best managed and highest quality names under our coverage universe, but with the stock outperforming since August 17, 2010 (+61% vs S&P 500: +36%) and trading at (8.0x 2013E EV/EBITDA) a modest premium to its historical average, we believe the stock is fairly valued and downgrading it to a Hold. … Regardless, Ball is a great FCF / capital deployment story, and we would look for a pullback (low $40s) as a re-entry point. We would be more bullish on the stock if demand picked up in the N.A. beverage can market (Alcoa expects flat to down 1%) or the company finds some nice tuck-ins to reaccelerate EBITDA growth."
Ball Corporation closed at $46.31 on Thursday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.