UPDATE: UBS Raises PT to $11 on Cott on Improving Margins and Free Cash Flows

UBS reiterated its Buy rating on Cott

and increased its price target from $10 to $11. UBS noted, "We do not believe that COT is trading in-line with its ability to consistently generate FCF. We are raising our EPSe to account for debt paydown (lower interest). Following the debt paydown, during which they can pay dividend and repurchase shares, we assume bigger buybacks. In the interim, Cott's margin profile should improve as efficiencies are realized and cost inflation moderates." Cott closed at $8.10 on Friday.