Goldman Sachs analyst Adam Samuelson has reiterated their bullish stance on BALL stock, giving a Buy rating on February 2.
Adam Samuelson has given a Buy rating to Ball Corp (BALL) following a comprehensive review of the company’s recent financial maneuvers and strategic changes. The sale of Ball’s Aerospace division to BAE Systems, Inc. for approximately $4.5 billion in net cash has significantly altered the financial landscape of the company. Samuelson’s analysis indicates that the utilization of these proceeds is poised to strengthen Ball’s financial position. Specifically, allocating around $2 billion for debt reduction and another $2 billion for share repurchase programs is expected to bolster earnings per share (EPS) for the upcoming years, leading to an enhanced overall financial profile for Ball.
Subsequent to the sale and the projected use of funds, Samuelson updated his EPS estimates for the years 2024 through 2026, which now show an increase for the latter two years, reflecting a more optimistic outlook for Ball’s earnings growth. Additionally, the analyst has raised the price target to $69, signaling confidence in the stock’s future performance. The strategic decision to divest from the Aerospace sector and the prudent allocation of the sale proceeds demonstrate Ball’s commitment to optimizing its core operations and returning value to shareholders, which underpins Samuelson’s Buy recommendation.
In another report released on February 2, Loop Capital Markets also maintained a Buy rating on the stock with a $72.00 price target.
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Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BALL in relation to earlier this year.
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Ball (BALL) Company Description:
Colorado-based Ball Corp. was founded in 1880 and provides aluminum packaging products to the beverage, personal care, automotive, paint, healthcare, and household products industries. It operates in four segments: Beverage Packaging, North and Central America; Beverage Packaging, South America; Beverage Packaging, Europe; and Aerospace.
Read More on BALL:
- Ball Corporation Divests Aerospace Division to BAE Systems
- Ball Completes Sale of Aerospace Business
- Ball Corporation Launches $1.75 Billion Senior Notes Buyback
- Ball Corporation Announces Cash Tender Offers for Certain Outstanding Debt Securities
- Ball Corporation Aerospace Division Sold to BAE Systems
