UPDATE: Citigroup Downgrades Silgan Holdings to Neutral; Valuation is Fair

Citigroup downgraded Silgan Holdings (NASDAQ:) from Buy to Neutral and maintained a $49.00 price target. Citigroup commented, "Our downgrade is based on fair valuation (7.9x NTM EBITDA vs. 10-year average of 6.8x and Packaging sector at 7.8x). We find the valuation discount (~0.5x EBITDA) that SLGN has historically traded at vs. competitors BLL & CCK has narrowed, despite SLGN's return on capital underperforming those peers since 2010. While we like the predictability of SLGN's high quality portfolio and expect returns to improve in 2013-14, we think the improvement is largely priced into the stock and move to Neutral." Silgan Holdings closed at $44.05 on Tuesday.