Multi-Color Corp (NASDAQ: LABL) received a Sell rating and a $57 price target from KeyBanc analyst Adam Josephson today. The company’s shares opened today at $63.85, close to its 52-week low of $61.45.
Josephson commented:
“We are downgrading Multi-Color Corporation (LABL) from SW to Underweight. The Company levered up to ~5x EBITDA for its recent acquisition of the acquired business’s performance has been consistently below LABL’s expectations in the first three quarters of ownership. LABL’s last large acquisition posed problems of its own and eventually resulted in a goodwill impairment charge. Given the risks related to LABL’s recent acquisition, we think there is potential downside to both consensus estimates and the multiple. We had an Underweight rating on the shares until early February, when the shares hit our downside price target, and we upgraded them to Sector Weight.”
According to TipRanks.com, Josephson is a 4-star analyst with an average return of 7.6% and a 65.0% 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 Multi-Color Corp is a Hold with an average price target of $70.
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The company has a one-year high of $89.70 and a one-year low of $61.45. Currently, Multi-Color Corp has an average volume of 115.4K.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is negative on the stock. Most recently, in June 2018, Sharon Birkett, the CFO of LABL sold 13,500 shares for a total of $930,150.
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Multi-Color Corp. engages in the provision of label solutions supporting various industries such as home and personal care, wine and spirit, food and beverage, healthcare and specialty consumer products. It operates through the Consumer Product Goods; Wine and Spirits; and Food and Beverage segments.
