On Monday, Wells Fargo adjusted its outlook on Ball Corp (NYSE: NYSE:BALL), a leading supplier of packaging solutions for beverage and food products, by increasing the price target to $65 from $52. The firm maintained its Equal Weight rating on the stock. The revision reflects positive developments in the Brazilian market, which are expected to support Ball Corp's financial performance.
The firm noted the improving beverage can fundamentals in Brazil, highlighting that disinflation and better volumes are signaling a turning point for the market. These factors are anticipated to positively impact Ball Corp's operations in the region.
In addition to the favorable market conditions in Brazil, Wells Fargo pointed out the strategic significance of Ball Corp's recent Aero deal closure. This transaction is expected to substantially enhance the company's balance sheet. Moreover, it is projected to accelerate the company's share repurchase program, potentially allowing for the buyback of approximately 15% of its shares over the next 18 to 24 months.
Reiterating the Equal Weight rating, the firm expressed confidence in the known catalysts that are likely to drive Ball Corp's growth. Alongside the price target increase, the firm also revised its earnings per share (EPS) estimates for 2024 and 2025 to $2.50 and $3.10, respectively, from the previous estimates of $2.55 and $2.90.
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