Robert W. Baird analyst Ghansham Panjabi maintained a Hold rating on Berry Global Group (BERY – Research Report) on May 10 and set a price target of $65.00.
Ghansham Panjabi has given his Hold rating due to a combination of factors surrounding Berry Global Group’s strategic initiatives and the current market environment. On the positive side, the company’s focus on portfolio optimization and its efforts to increase productivity and better align its assets are acknowledged as steps in the right direction. Panjabi recognizes that these changes, initiated by the new CEO, are aimed at enhancing long-term shareholder value. However, he also notes that this transformation is a lengthy process and the benefits may be realized unevenly over time.
The Hold rating also reflects various external challenges faced by Berry Global Group. The analyst points out the mixed operating environment, with the company needing to navigate a complex raw material cost landscape that hints at stagflationary conditions. Moreover, the reshuffling of the company’s asset portfolio is occurring amidst a backdrop of rising interest rates, which could potentially impair the valuation of divested assets. Additionally, there is uncertainty regarding the intrinsic growth rates of the company’s remaining assets, especially in the context of the negative sentiment towards single-use plastics, particularly in Europe. Given these circumstances, despite an apparently attractive valuation and management’s optimistic guidance, Panjabi maintains a cautious stance with a Neutral rating and a $65 price target.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $64.00 price target.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BERY in relation to earlier this year.
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Berry Global Group (BERY) Company Description:
Berry Global Group, Inc. engages in the provision of value added engineered materials, nonwoven specialty materials and consumer packaging with customized solutions. It operates through the following segments: Consumer Packaging International, Consumer Packaging North America, Health, Hygiene & Specialties, and Engineered Materials. The Consumer Packaging International segment consists of containers, closures, dispensing systems, pharmaceutical devices and packaging, polythene films, and technical components. The Consumer Packaging North America segment consists of containers, foodservice items, closures, over caps, bottles, prescription vials, and tubes. The Engineered Materials segment consists of tapes and adhesives, polyethylene-based film products, can liners, and specialty coated and laminated products. The Health, Hygiene & Specialties segment consists of nonwoven specialty materials and films used in hygiene, infection prevention, personal care, industrial, construction, and filtration applications. The company was founded on November 18, 2005 and is headquartered in Evansville, IN.
