Raymond James starts AptarGroup at Outperform, sees margin, ROIC expansion

Raymond James analyst Matt Roberts initiated coverage of AptarGroup (ATR) with an Outperform rating and $200 price target The company’s defensible moats and fortress balance sheet, coupled with a specialty and growing position in Pharma end markets, make it a high quality compounder story long term, the analyst tells investors in a research note. While AptarGroup faces near-term risk related to outsized international exposure and potentially lingering headwinds in Beauty, as the mix shift story continues driven by Aptar’s highest-margin Proprietary Drug Delivery Systems and an inflection in higher-value injectables components, the firm anticipates margin and ROIC – return on invested capital – expansion alike, Raymond James added.