Owens-Illinois Inc OI was downgraded from Buy to Neutral by Bank of America on Thursday.
The team of analysts led by George L. Staphos issued a report that explained they had expected a turnaround for the stock in June, but it has fallen nearly 25 percent since July.
The report acknowledged that Owens-Illinois "has not performed as well as we had expected after our upgrade in June. After its recent pre-announcement and sharp pullback, we maintained the Buy given the potential for OI to improve returns to the equity holder through capital structure and use of cash."
A significant reason for the rating change is anticipated U.S. Dollar appreciation which should create “additional headwind” in Bank of America's Owens-Illinois earnings model. "2015 could now wind up being a relatively flat year from an EPS standpoint," according to the report.
Owens-Illinois Inc traded at $25.91 late Thursday, up 0.12 percent.
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