Analyst Downgrades Berry Global: Is the Center of the Aisle Falling Out?
Portfolio Pulse from Lekha Gupta
RBC Capital Markets analyst Arun Viswanathan downgraded Berry Global Group, Inc. (NYSE:BERY) to Sector Perform from Outperform and reduced the price target to $62 from $72, citing near-term volume challenges and potential net price headwinds in the first half of FY24. Despite good execution on cost initiatives and FCF generation, weak demand in Europe/Industrial sectors and a shift away from center of aisle products are concerns. The analyst also noted disappointment over the failure to sell HH&S, which could have improved capital intensity and EBITDA growth. Adjusted EPS estimates for 2024 and 2025 are $7.45 and $8.25, respectively. BERY shares dropped 0.60% to $59.60.
March 15, 2024 | 5:51 pm
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Berry Global downgraded by RBC to Sector Perform with a price target cut to $62 from $72 due to near-term volume challenges and potential net price headwinds, despite good cost control and FCF generation.
The downgrade by a major analyst due to concerns over near-term volume and price headwinds directly impacts investor sentiment and could lead to a short-term decrease in stock price. The reduction in price target further emphasizes the analyst's cautious outlook on the stock.
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IMPORTANCE 90
RELEVANCE 100