UPDATE: J.P. Morgan Lowering Price Target On Owens-Illinois

J.P. Morgan Chase & Co. is out with a research report on Owens-Illinois, Inc. (NYSE:

) and is lowering its price target to $29 from $32, and it has a Neutral rating after it reported earnings. In a note to clients, J.P. Morgan Chase & Co. writes, "Coming out of the 2Q pre-announcement, we were still concerned that the final shoe(s) had yet to fall on the OI story, namely that the FCF guidance for 2011 and price/cost parity in 2012 would not be achievable. Indeed, the FCF cut came with the 2Q release; however, another unexpected shoe fell, with the already reduced 3Q EPS now also expected to be below the mark, leading to a fresh round of estimate cuts that could lop ~10% off 2012E consensus. The real story here, in our view, remains the FCF yield, which is our ultimate trigger of when to buy; and, on this basis, with 2012 potentially still below the magic $300mm target initially set for 2011, we have a tough time seeing the stock get back near $30 in the near term. Thus, we remain Neutral, with greater interest closer to $20." Shares of OI closed at $2.32 yesterday to close $23.54 yesterday.