KeyBanc analyst Adam Josephson maintained a Hold rating on AptarGroup (ATR) today. The company’s shares opened today at $102.48.
Josephson commented:
“We consider ATR a best-in-class packaging company given its high-growth, high-margin, high-return-on-capital Pharma business and strong balance sheet, and expect the stock to outperform its peers in a downturn given its defensive characteristics. That said, the stock’s valuation is worth discussing. The stock is trading at a substantial ~13x 2019E EV/EBITDA multiple, the highest EBITDA multiple in the sector despite a recently low adjusted EBITDA-to-free cash flow conversion. As a result of those two issues, ATR is trading at a ~2% free cash flow yield (on market cap) on 2019E and 2020E; we don’t recall any company we’ve covered having traded at such a low yield, and some of our other companies have comparable or superior growth, returns, balance sheets (Avery Dennison comes to mind).”
According to TipRanks.com, Josephson is a 4-star analyst with an average return of 8.4% and a 66.7% 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 AptarGroup is a Moderate Buy with an average price target of $106.
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Based on AptarGroup’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $40.67 million. In comparison, last year the company had a net profit of $49.51 million.
Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock.
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AptarGroup, Inc. develops, manufactures and sales of consumer product dispensing systems. It operates through the following business segments : Beauty & Home, Pharma, and Food & Beverage.
