In a report released today, Adam Josephson from KeyBanc maintained a Sell rating on Multi-Color Corp (LABL). The company’s shares opened today at $56.65, close to its 52-week low of $50.52.
Josephson noted:
“We reiterate our Underweight rating and reduce our price target from $57 to $50. We are maintaining our FY19 adj. EPS estimate of $4.27 (at the lower end of guidance of $4.20-$4.50) despite $14 million lower adj. EBITDA; LABL is offsetting the lower EBITDA with lower D&A expense and a lower tax rate (non-operating items). For perspective, for the full-year, the lower D&A expense and lower tax rate are giving the EPS boost compared to its previous guidance, so the below the line benefits are sizable. We are reducing our FY20 adj. EPS estimate from $4.53 to $4.27 (consensus is much higher, at $4.96) because of lower EBITDA, which is the result of reduced sales growth and margin expectations. Some of this sales weakness is related to the recent Constantia Labels acquisition, while some is related to the legacy business.”
According to TipRanks.com, Josephson is a 4-star analyst with an average return of 7.2% and a 64.6% success rate. Josephson covers the Consumer Goods sector, focusing on stocks such as International Paper Co, Avery Dennison Corp, and Graphic Packaging.
The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Multi-Color Corp with a $70 average price target.
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Based on Multi-Color Corp’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $18.14 million. In comparison, last year the company had a net profit of $15.19 million.
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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.
