Ball Corp's Strategic Sale Of Aerospace Business Is Path To Enhanced Valuation And Balance Sheet Health: Analyst
Portfolio Pulse from Shivani Kumaresan
Ball Corp (NYSE:BALL) has agreed to sell its Aerospace business to BAE Systems for $5.6 billion in cash. The proceeds, along with strong FCF generation through BevCan operations, will be used to further de-lever the company. The deal is seen as a positive move by Mizuho Securities analyst Christopher Parkinson, who reiterated a Neutral rating on BALL shares with a price target of $59. The analyst also suggested that the deal could reignite debate on Crown Holdings Inc's (NYSE:CCK) willingness to divest non-BevCan related businesses.
August 18, 2023 | 5:10 pm
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NEUTRAL IMPACT
The deal between Ball Corp and BAE Systems could reignite debate on Crown Holdings Inc's willingness to divest non-BevCan related businesses.
The analyst's comments suggest that the deal between Ball Corp and BAE Systems could lead to renewed discussions about Crown Holdings' strategy. This could potentially impact the company's shares, depending on the outcome of these discussions.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Ball Corp's sale of its Aerospace business is seen as a positive move that will lead to a healthier balance sheet and more focus on BevCan. The company's shares are expected to accelerate returns through buybacks and dividends.
The sale of the Aerospace business will provide Ball Corp with significant cash proceeds, which will be used to de-lever the company. This is expected to improve the company's balance sheet and allow for more focus on its BevCan operations. The analyst's positive view of the deal suggests potential upside for the company's shares.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100