Owens-Illinois Inc. shares fell to a new year low on 23 October 2008 after an analyst cut his price target and earnings estimates on the US container glass maker, citing an increasingly valuable dolla…
Owens-Illinois Inc. shares fell to a new year low on 23 October 2008 after an analyst cut his price target and earnings estimates on the US container glass maker, citing an increasingly valuable dollar. Citi Investment Research analyst Timothy Thein reduced his 4Q earnings-per-share estimate to USD 0.45 from USD 0.55. Mr. Thein also lowered his 2009 earnings-per-share estimate by USD 0.35 to USD 4.15 to “reflect a greater currency headwind”. The analyst cut his share price target to USD 42 from USD 55. However, Mr. Thein reiterated a “Buy” rating on the stock. “After a challenging two-year period of energy and raw material cost inflation in 2005, 2006 and 2007, we see opportunity for significant (earnings-per-share) improvement in 2008 and beyond as the company realizes greater benefits from a successful integration of the BSN assets, working capital improvement, plus aggressive reduction in debt, which we believe is the company“s No. 1 priority in terms of free cash deployment”, he said. Shares of the Perrysburg, Ohio-based company, which announces 3Q results on 29 October 2008, fell USD 1.67, or 8.1%, to USD 18.94 in afternoon trading. The stock earlier hit a new year low of USD 18.67. It has traded in a 52-week range of USD 19.65 to USD 60.60.