Shares of container glass manufacturer Owens-Illinois Inc. are likely to rise on favorable European labor negotiations, strong free cash flow and currently negative investor sentiment, an analyst wrot…
Shares of container glass manufacturer Owens-Illinois Inc. are likely to rise on favorable European labor negotiations, strong free cash flow and currently negative investor sentiment, an analyst wrote 9 December 2008. Citi Investment Research analyst Timothy Thein, who reiterated his “Buy” rating on the stock and USD 42 price target, said the stock has been trading near the low end of its historic range. It also has a strong free cash flow, a key indicator of a company“s ability to generate cash after maintaining or expanding its assets. In addition, Mr. Thein said the Perrysburg, Ohio-based company“s sale of its plastics assets has significantly improved its balance sheet. The company aims to close down three more furnaces in Western Europe, or about 1% of total European capacity. Other glass container makers in that region are expected to follow the firm“s lead.