In a report released yesterday, Adam Josephson from KeyBanc maintained a Hold rating on Berry Plastics (BERY). The company’s shares closed last Monday at $39.20, close to its 52-week low of $39.07.
Josephson wrote:
“We aren’t reducing our FY20 adj. EBITDA estimate, though our adj. EPS estimate is coming down to reflect higher D&A expense and shares outstanding (the latter related to options issuance). BERY’s net leverage on combined TTM adj. EBITDA is ~5.3x, whereas net leverage based on the Company’s definition (FY20E adj. EBITDA plus the full $150 million of expected future synergies) is ~5.0x. Risks along with high leverage are accelerating organic volume and EBITDA declines, sustainability concerns, the deteriorating global economy, the continued strengthening U.S. dollar, and any acquisition integration hiccups.”
According to TipRanks.com, Josephson is a 4-star analyst with an average return of 10.3% and a 71.4% success rate. Josephson covers the Consumer Goods sector, focusing on stocks such as International Paper Co, Avery Dennison Corp, and Graphic Packaging.
Berry Plastics has an analyst consensus of Hold.
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The company has a one-year high of $59.16 and a one-year low of $39.07. Currently, Berry Plastics has an average volume of 1.52M.
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Berry Global Group, Inc. engages in the provision of value added engineered materials, nonwoven specialty materials and consumer packaging with customized solutions. It operates through the following segments: Consumer Packaging; Health, Hygiene & Specialties; and Engineered Materials.
