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Ball Corporation (BALL), with a market cap of $19.3 billion, operates in the packaging and aerospace industries. The Westminster, Colorado-based company specializes in aluminum packaging for beverages, personal care, and household products, serving both multinational corporations and government customers globally.
Shares of this metal packaging company have underperformed the broader market over the past 52 weeks. BALL has risen 13.5% during this period, contrasting with the S&P 500 Index's ($SPX) robust rally of 24.9%. In 2024, BALL shares are up 9.5%, lagging behind SPX's 16.2% gain on a YTD basis.
However, zooming in further, BALL's performance surpasses the S&P 500 Materials Sector SPDR (XLB), which has recorded gains of 10.9% over the past 52 weeks and a 5.8% increase on a YTD basis.
Ball Corporation has underperformed relative to the SPX due to broader industry challenges such as rising aluminum costs, operational disruptions in Argentina, and weaker demand in Europe and North America. However, the stock rose 1.1% on Aug. 1 after the company reported better-than-expected Q2 profit, driven by cost-reduction efforts and lower input costs, despite missing revenue estimates. Investors were encouraged by the company's improved profit outlook and the benefits of its streamlined operations.
For the current fiscal year, ending in December, analysts expect BALL's EPS to grow 7.6% year over year to $3.12 per share. The company's earnings surprise history is promising. It topped the consensus estimates in all of the last four quarters.
The consensus rating among the 15 analysts covering the stock is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and one “Strong Sell.”
This configuration is more bullish than three months ago, with three analysts suggesting a “Strong Buy.”
On Aug. 5, RBC Capital lowered BALL's price target to $77 but maintains an “Outperform” rating, citing improved earnings expectations after a strong Q2, while adjusting the EBITDA multiple due to uncertainty in Argentina, yet remains optimistic about the company's long-term potential. This newly assigned target suggests a 22.2% potential upside from current levels.
The mean price target of $71.33 represents a premium of 13.2% to BALL's current levels. The Street-high price target of $83 implies that BALL stock could rally as much as 31.7% from here.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
