BofA Upgrades O-I Glass On An Improvement In Outlook

O-I Glass Inc’s (NYSE: OI) positioning in Europe has strengthened and there is potential for demand for glass-packaged products to be less price elastic, according to BofA Securities.

The O-I Glass Analyst: George Staphos upgraded the rating for O-I Glass from Neutral to Buy, while raising the price target from $15 to $19.

The O-I Glass Thesis: The estimates for the company “seem to have reasonable conservatism,” Staphos said in the upgrade note.

“On price elasticity, our contacts believe that glass-packaged products should hold up better in a downturn than in prior periods,” the analyst wrote. “In Europe, OI seems to have some ability to manage price/cost flexibly and weather the volatility,” he added.

“While we think 'growth' will be at a premium in 2023 as the world decelerates, our discussions with our colleagues suggest 'value' (where OI would sit given its current 7x P/E) will have continued tailwinds for now,” Staphos further said in the note.

OI Price Action: Shares of O-I Glass had risen by 2.94% to $16.15 at the time of publication Friday.

Photo: Courtesy O-I