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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Ball Corporation

· 02/04/2021 19:58

12:55 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $1 to $114, or 33.0x our '21 EPS estimate, as we assume BLL will trade at a premium to its two-year average forward P/E multiple of 25.2x, justified by our outlook for 16% (or higher) EPS growth in both '21 and '22. We raise our '21 EPS estimate by $0.05 to $3.45 and maintain '22's at $4.05. BLL posts Q4 adjusted EPS of $0.81 vs. $0.71, $0.03 above consensus, driven by a top-line beat of 5.5%. Q4 sales increased Y/Y by 14%, driven by 12% global can volume growth and 18% growth in funded and unfunded aerospace backlog. Given the large scale of new capacity starting up and the labor to support this new capacity, Q4 start-up costs partly offset the benefit of higher volume and better mix. Despite planned capacity additions, demand for cans should still outstrip supply across BLL's North America, South America, and EMEA businesses. BLL's fundamentals have arguably never been stronger and the company has several large growth projects in both aluminum packaging and aerospace.