Ghansham Panjabi, an analyst from Robert W. Baird, maintained the Hold rating on AptarGroup (ATR – Research Report). The associated price target is $125.00.
Ghansham Panjabi has assigned a Hold rating to AptarGroup’s stock based on a variety of factors. Despite the company delivering a modest core profit and EPS upside during the third quarter, the expectations were quite high which resulted in a neutral-to-modestly negative perception of the earnings report. The pharmaceutical sector led the core sales increase with a 2% year-over-year rise, with growth in dispensing systems and a slight increase in injectables. However, there were underperformances in the Beauty and Closures sectors which were slightly offset by the Pharma sector and lower corporate expenses.
The fourth quarter outlook given by the company is in line with expectations, predicting continued strength in the Pharma and fragrance sectors, but there is uncertainty about the sustainability of the improvement in fragrance dispensing given a weaker global consumer. Furthermore, the company’s stock has been outperforming year to date, which could trigger profit-taking. Key questions that arose include the specific upside variances relative to the internal plan for the third quarter, expectations for the major Pharma verticals for the fourth quarter, and high-level variances for 2024 given a relatively anemic operating backdrop and likely tough comparisons in some areas.
Panjabi covers the Industrials sector, focusing on stocks such as AptarGroup, Avery Dennison, and Ball. According to TipRanks, Panjabi has an average return of 5.2% and a 55.98% success rate on recommended stocks.
In another report released on October 10, DBS also maintained a Hold rating on the stock with a $132.00 price target.
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AptarGroup (ATR) Company Description:
AptarGroup, Inc. develops manufactures and sales of consumer product dispensing systems. It operates through the following business segments: Beauty & Home, Pharma and Food & Beverage. The Beauty & Home segment primarily sells pumps, aerosol valves and accessories to the personal care and household markets and pumps and decorative components to the fragrance/cosmetic market. The Pharma segment supplies pumps and metered dose inhaler valves to the pharmaceutical market worldwide. The Food & Beverage segment sell dispensing and non-dispensing closures and, to a lesser degree, spray pumps and aerosol valves to the food and beverage markets. The company was founded in 1940 and is headquartered in Crystal Lake, IL.
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