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deleted(NYSE:SLGN) On Thursday, analysts at financial services firm JPMorgan Chase upgraded its investment rating from “underweight” to “neutral.” The consumer packaged goods maker is valued based on its profit potential, they said.
“Deleted (SLGN) now expects significant sales growth in the second half of 2024,” JPMorgan analyst Jeffrey Zekauskas said in an August 1 report. “As sales rebound, margins recover, and cash flow begins, we believe the company should keep pace with the market.”
Silgan’s (SLGN) metal container business faces challenges.
“The metal food can market appears to be growing steadily year-to-date,” JPMorgan said. “Pet food sales appear to be up about 2.5% and canned vegetable sales are down about -2.5%.”
The bank raised its price target on Silgan (SLGN) to $53 per share from the previous price of $46 per share, based on a projected enterprise value of 7.5 times 2025 EBITDA
Silgan ( SLGN ) management said during a recent earnings call with investors that it sees increased acquisition opportunities. JPMorgan Chase & Co. said its acquisition of Weener Packaging could add $115 million to adjusted EBITDA in 2025.
“The stock is currently trading close to our price target and exceeds our 2026 forecast free cash flow yield of 10%,” the bank said. “The primary use of Silgan’s (SLGN) free cash flow tends to be acquisition activity. “
