Jefferies analysts upgraded shares of Ball Corporation (NYSE:BALL) to Buy from Hold, raising the price target on the stock to $64 from $63 per share in a note Friday.
They said that the company's fundamentals have bottomed, and the stock is set up for a solid 2024.
"With the multiple re-basing back to pre-2019 levels, FCF re-accelerating, & fundamentals at a trough, we find the risk:reward attractive & we're upgrading BALL to a Buy," the analysts wrote.
"With ABI's vols stabilizing from the Bud Light fall out & better operating leverage in 2H23 with the excess inventory being worked down, we believe earnings have bottomed & it's an environment BALL can deliver solid results," they added.
The analysts feel that the set-up for BALL into next year is favorable, as the company receives the proceeds from the Aero divestiture in the first half of 2024, "it should line up with a recovery in vols in NA, & BALL has ~$3 bil of cash to buyback stock in 2024."