UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Owens-Illinois on Analyst Day Takeaways
In a report published Friday, J.P. Morgan reiterated its Neutral rating on Owens-Illinois (NYSE: OI), and slightly raised its price target from $27.00 to $28.00.
J.P. Morgan noted, “Against the backdrop of a high near-term bar based on recent stock performance, OI's 2015 analyst day targets did not disappoint, as EPS and FCF guidance had the right balance of upside levers under management's control and macro conservatism to give investors comfort that it was both achievable and well above 2012. With the targets now on the board, the company switches to the execution phase, around which recent performance has improved. Thus, we raise our 2014E EPS on the cost savings outlined and tweak up our Dec-13 PT using our FCF based valuation approach. Given the recent move in the stock, valuation looks fair on 2014E, though the stair step up in FCF through 2015 is compelling.”
Owens-Illinois closed on Thursday at $26.10.
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