BALL - Ball Corporation: Debt Reduction Measures Imply Significant Upside Potential

2024-05-06 16:03:11 ET

Summary

• Ball Corporation recently reported the sale of business segments, leading to a decrease in net debt/EBITDA and making the company more appealing.
• Analysts expect EPS growth in Q2 and Q3 2024, which could increase demand for the stock.
• The company's ongoing restructuring efforts and the acceptance of annual pass-through of inflationary costs by clients may lead to future FCF margin growth.

Ball Corporation ( BALL ) recently reported the sale of the aerospace business segment and a number of restructuring measures that allowed a significant reduction in the debt. With better EPS than expected recently reported and analysts expecting better figures in Q2 2024 and Q3 2024, BALL is becoming more and more appealing these days. Besides, the fact that clients seem to be accepting annual pass-throughs of inflationary costs could bring FCF margin growth. There are some risks coming from the total amount of debt and aluminum supply issues. However, I believe that BALL could trade at higher marks.

Ball Corporation

Ball Corporation is one of the leading producers of aluminum packaging solutions for various products, including cans for the beverage market as well as personal care and other household products....

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