Glassware and flatware maker Libbey Inc. is poised for growth and merits a “buy”, rating according to rose on the news that an analyst with a global investment banking services firm.
Jefferies & Co. …
Glassware and flatware maker Libbey Inc. is poised for growth and merits a “buy”, rating according to rose on the news that an analyst with a global investment banking services firm. Jefferies & Co. analyst Douglas M. Lane said in a note to investors on 18 October 2007 that Libbey“s transformation after buying out the remainder of Crisa, its Mexican joint venture with Vitro SA de CV, is complete. Mr. Lane said Libbey now has half its production capacity outside the US, compared with none five years ago. That has cut labor costs, according to the analyst. Furthermore, cost pressures from natural gas prices and pension and post-retirement health care expenses appear to be easing, the company said. “We believe Libbey is well positioned in the attractive foodservice industry”, Lane said. The company has a 56% market share in the US foodservice tableware market and a 28% market share in the retail glass market in the US. “We believe the riskiest part of Libbey“s current transformation is over”, Lane said. “Libbey has beaten and raised (earnings estimates) for three straight quarters”. He set a 12-month price target of USD 27 on the company“s stock.