William Blair analyst Matt Larew has maintained their bullish stance on ATR stock, giving a Buy rating yesterday.
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Matt Larew has given his Buy rating due to a combination of factors including AptarGroup’s strong second-quarter performance and its potential for future growth. The company exceeded expectations across all segments, with total revenue and core growth surpassing both William Blair’s and street estimates. Despite the third-quarter EPS guidance being slightly below consensus, the company demonstrated robust financial health with a solid gross margin and adjusted EBITDA.
Furthermore, while the company faces some temporary headwinds such as legal fees and normalization of Naloxone sales, these challenges are expected to subside. The stock is currently trading at a valuation below its historical average and its peers in the pharma packaging sector, presenting a potential opportunity for investors. Larew anticipates a return to a 10% EPS growth rate by 2026, suggesting a favorable long-term outlook for AptarGroup. Therefore, the stock is rated as Outperform, indicating confidence in its future performance.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $153.00 price target.
Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ATR in relation to earlier this year.