Ball Corporation ( NYSE: BALL ) stock cratered even further on Friday after a post-earnings plunge the day prior.
Shares of the Colorado-based producer of glass jars, lids, and other packaging products plummeted over 20% on Friday, adding to an 18.38% decline on Thursday. The drop sent shares to a 52-week low of $55.48 at the day’s nadir as slowing demand dynamics caused Wall Street to reassess ratings.
“We are downgrading Ball ( BALL ) to a Hold rating given a deceleration in United States beverage can demand that is greater than feared with this year's earnings much lower than expected,” Deutsche Bank analyst Kyle White told clients on Friday. “While we believe the multi-year growth story for beverage cans still exists on a global basis, we see better ways to capture this opportunity on a relative basis and choose to be more selective.”
While he noted that the steep drop could be characterized as capitulation, an upside catalyst to arouse shares out of their slump after earnings is not readily apparent. Indeed, the lowered growth outlook is likely to keep shares depressed for the coming year, White surmised.
Finally, White warned that the company is “losing its long-held premium from ESG and operational excellence” that kept many investors on board. In all, the bearish outlook caused White to not only cut his rating on the stock, but reduce his price target from $81 to $65.
Read more on the details of the earnings result and a similar rating reduction from Truist .
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Ball Corporation continues stark slide as analysts reduce ratings