JPMorgan Upgrades Ball Corp. To Overweight

"We believe that even if divestitures come in higher and synergies come in lower than BLL expects, BLL can still achieve a return on its investment that exceeds its 9 percent threshold," analyst Tyler Langton wrote in a note to clients.

"Divestitures by BLL at a reasonable multiple should also provide financial buyers with attractive returns if they pursued a leveraged buyout of the assets, mitigating the risk of BLL having to sell the assets at a less than compelling price," Langton elaborated.

Related Link: Target Shares Under Pressure As Barclays Downgrades To Underweight

JPMorgan pointed that even with their more "conservative assumptions" (defined in the context as "divestitures of$2.8 billion in revenues and synergies of $250 million versus BLL's expectation of$2.5 billion in divestitures and greater than $300 million in synergies"), the analyst still sees a healthy upside in Ball's stock.

"To the upside, we note that if BLL were able to generate $300 million of synergies from the Rexam transaction, our price target for the Ball/Rexam combination would increase to$82, holding all else equal. To the downside, if synergies came in at $150 million, our price target would drop to $74, holding all else equal," the analyst added.

JPMorgan has a price target of $79 on the stock.

Shares of Ball Corp. closed Wednesday's regular trading session at $70.91.