KeyBanc analyst Adam Josephson maintained a Sell rating on Owens-Illinois (OI – Research Report) today and set a price target of $9.50. The company’s shares closed last Monday at $10.89, close to its 52-week low of $9.58.
“We expect less than $50 million of free cash flow in 2019 (after asbestos and minority dividends), and we expect notably higher cash flow next year only because we expect OI to substantially cut its capex. We’re reducing our 2019 adj. EPS estimate from $2.47 to $2.30 (OI called out a potential ~ $0.10 headwind from FX to its previous guidance of $2.40-$2.55), and our 2020 estimate from $2.35 to $2.15 (well below consensus of $2.62). We’re well below consensus for next year even though we’re only assuming a 2% adj. EBITDA decline, compared to a projected 5% this year.”
According to TipRanks.com, Josephson is a 4-star analyst with an average return of 9.5% and a 67.9% success rate. Josephson covers the Consumer Goods sector, focusing on stocks such as International Paper Co, Avery Dennison Corp, and Graphic Packaging.
Currently, the analyst consensus on Owens-Illinois is a Hold with an average price target of $14.64.
The company has a one-year high of $20.78 and a one-year low of $9.58. Currently, Owens-Illinois has an average volume of 1.59M.
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