Silgan Holdings (SLGN) Downgraded

Silgan Holdings (NASDAQ: SLGN) has been downgraded to a ‘neutral’ grading by Research Firm Baird.

According to a recently released report, Silgan is likely to underperform in the near future, largely due to its defensive sales portfolio. However, the report highlighted the strong execution track record of the firm’s management. The stock has been an outperformer since late May, 2009.

Silgan has consistently generated positive cash flows and hence can utilize these funds for acquisition purpose. Although the firm has been downgraded, Baird has maintained its price target of $60, which is based on the 6.0X multiple of Estimated EV:EBITDA for Year2010.