KeyBanc analyst Adam Josephson maintained a Hold rating on Silgan Holdings (SLGN) today. The company’s shares opened today at $30.43, close to its 52-week high of $31.69.
Josephson said:
“We are maintaining our 2019 adj. EPS estimate of $2.18 (guidance remains $2.10-$2.20) and 2020 estimate of $2.23 (consensus is $2.36). We think the most likely catalyst for the shares would be a large, debt-financed acquisition, but we have no idea if or when one will take place; in the meantime, we are assuming a large share repurchase in 1Q20. SLGN is trading at ~9x our 2019 EBITDA estimate (using an average net debt figure for 2019), between the five- and 10-year NTM averages; we don’t think a higher-than- average multiple is warranted given the Company’s lack of organic volume growth and declining return on assets over the past several years (from 2010 onward).”
According to TipRanks.com, Josephson is a 4-star analyst with an average return of 8.3% and a 67.5% success rate. Josephson covers the Consumer Goods sector, focusing on stocks such as International Paper Co, Avery Dennison Corp, and Graphic Packaging.
Silgan Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $33, implying an 8.4% upside from current levels. In a report issued on July 17, J.P. Morgan also upgraded the stock to Hold with a $33 price target.
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Silgan Holdings’ market cap is currently $3.36B and has a P/E ratio of 14.95. The company has a Price to Book ratio of 3.73.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock.
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Silgan Holdings, Inc. engages in the manufacture and sale of rigid packaging for consumer goods products. It operates through the following segments: Metal Containers, Closures and Plastic Containers. The Metal Containers segment includes steel and aluminium containers for human and pet food, and general line products.
