On Thursday, Mizuho maintained its Neutral rating on Berry Global Group (NYSE:BERY) stock but increased the shares target to $69.00, up from the previous $65.00. The adjustment reflects an anticipation of volume growth for the company, marking the first potential increase since September 2021.
Berry Global Group is expected to report its June quarter (F3Q) earnings with EBITDA and EPS figures that align with the Bloomberg consensus, estimated at $546 million and $2.07 respectively. This forecast suggests a stable performance in line with market expectations.
The analyst from Mizuho indicated that Berry Global might experience flattish-to-positive volume growth during this quarter. This projection is a significant point of interest as it would be the first instance of volume growth for the company in several quarters.
Despite the positive outlook on volume growth, Mizuho has not altered its estimates for Berry Global's financial performance. The firm's position remains neutral, indicating a wait-and-see approach to the company's upcoming financial results.
The new price target of $69 is based on approximately 7.3 times the forward next twelve months plus one quarter (NTM+1) estimated EBITDA of $2.15 billion. This valuation metric provides an updated perspective on the company's worth according to Mizuho's analysis.
In other recent news, Berry Global Group has been the subject of several significant developments. The company has reaffirmed its fiscal 2024 guidance, despite market challenges, and is focusing on driving shareholder value through portfolio optimization, cost-saving measures, and strategic divestitures.
Berry Global's financial metrics show a market capitalization of around $6.7 billion, with estimated earnings per share (EPS) for the upcoming fiscal years being $7.50 and $8.51 respectively.
In an effort to bolster its balance sheet, Berry Global announced its intention to issue a new series of first priority senior secured notes. This offering aims to facilitate the repurchase of the Issuer's existing 4.875% senior secured notes due in 2026 and cover related fees and expenses.
On the analyst front, BofA Securities increased its price target for Berry Global to $81.00, maintaining its Buy rating on the stock. This revision reflects Berry Global's potential for growth through valuation, cost optimization efforts, and strategic portfolio adjustments.
Other recent developments include two completed divestitures with anticipated cash proceeds of over $2 billion expected from strategic divestitures within the next year. The proposed merger with Glatfelter in the Health, Hygiene and Specialty segment is expected to close in the second half of 2024. These are some of the recent developments surrounding Berry Global Group.
InvestingPro Insights
As Berry Global Group (NYSE:BERY) approaches its next earnings report, real-time data and analysis from InvestingPro offer additional context for investors. The company's aggressive share buyback strategy and high shareholder yield are notable highlights, suggesting a proactive approach to enhancing shareholder value. Additionally, Berry's valuation implies a robust free cash flow yield, which can be appealing for those focused on the company's ability to generate cash.
With a market capitalization of $7.3 billion and a trailing P/E ratio that has adjusted to a more attractive 11.32, the company's fundamentals may catch the eye of value investors. Moreover, the stock's low price volatility contributes to its profile as a potentially stable investment. Berry's strong gross profit margin, standing at 18.19%, alongside a dividend yield of 1.72% and a recent 10% dividend growth, further underscore the company's financial health and commitment to returning value to shareholders.
Investors looking for a deeper dive into Berry Global can find additional "InvestingPro Tips" on the company's profile, which include predictions of profitability for the current year and a track record of profitability over the last twelve months. For those interested in exploring these insights, consider using the coupon code PRONEWS24 to receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro. With 5 more tips available, InvestingPro provides a comprehensive analysis that could help inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.