BERY - Berry Global Group is defended at Goldman Sachs after earnings stumble

Goldman Sachs called out a potential rally for packaging stock Berry Global Group ( NYSE: BERY ) despite the mixed earnings report that included a 7% decline in revenue off lower organic revenue.

Analyst Adam Samuelson pointed to BERY's strong free cash flow profile, quarterly dividend, and additional $700M in buyback firepower as enticing enough to bring back investors.

"Overall, while today’s results did not reveal a hoped-for inflection in organic profit growth, we continue to believe current valuation levels are at odds with true underlying business fundamentals, end-market resilience, and durability of FCF generation, and today’s capital allocation decision should give investors added confidence in management’s ability to execute against its medium-/long-term targets, in our view."

BERY was noted to be trading at a 6.9X EV/EBITDA multiple and with a 14.3% free cash flow on FY2024 estimates. That level is called an attractive entry point for a compelling risk/reward profile.

Goldman Sachs has a Buy rating on BERY and price target of $71.

Dig into the Berry Global earnings call transcript.

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