Zacks Investment Research upgraded shares of Silgan Holdings Inc. (SLGN) from UNDERPERFORM to NEUTRAL on February 21, 2014, with a target price of $50.00.
We are upgrading our recommendation on Silgan Holdings from Underperform to Neutral with a target price of $50.00. Silgan's earnings increased 2.5% year over year to $2.77 per share for full-year 2013, driven by a rise in volumes in the metal container business. However, quarterly earnings declined 4.2% year over year to $0.45 per share. The company guided adjusted EPS in the range of $3.10 to $3.30 for 2014. Silgan will benefit from share repurchases, acquisitions and cost reduction initiatives, such as Can Vision 2020. In addition, continued manufacturing improvement and lower depreciation and pension expense will drive growth. However, high debt-to-capitalization ratio, pricing pressure, adverse weather condition and ongoing economic instability in Europe are likely to remain headwinds over the next few quarters.
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