Ball (BALL – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Philip Ng from Jefferies maintained a Buy rating on the stock and has a $68.00 price target.
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Philip Ng has given his Buy rating due to a combination of factors that suggest Ball Corporation is well-positioned for growth. Firstly, Ball is anticipated to achieve 11-14% EPS growth in 2025, driven by a projected 2-3% increase in global beverage can volumes. Despite some challenges in North America, demand showed improvement in the fourth quarter, and management expects volume growth to align with or slightly surpass market expectations. Additionally, the divestment of its cups business and strategic share repurchases are set to enhance earnings and reduce share count.
Furthermore, Ball has successfully renegotiated and extended contracts, securing a major CSD client until the end of the decade. This includes a new plant in Oregon expected to contribute significantly to EBITDA. Ball’s acquisition of Florida Can at a favorable cost is projected to optimize its network and contribute to earnings. Moreover, signs of recovery in Argentina and anticipated growth in Europe further bolster the positive outlook. These strategic moves and the overall improvement in market conditions underpin Philip Ng’s Buy recommendation for Ball.
Ng covers the Consumer Cyclical sector, focusing on stocks such as International Paper Co, Ball, and Packaging. According to TipRanks, Ng has an average return of 9.4% and a 55.17% success rate on recommended stocks.