In a report released yesterday, George Staphos from Bank of America Securities maintained a Hold rating on AptarGroup (ATR – Research Report), with a price target of $173.00.
George Staphos has given his Hold rating due to a combination of factors impacting AptarGroup’s performance. The company’s strong results in the Pharma segment were counterbalanced by weaker outcomes in the Beauty and Closures segments, largely due to foreign exchange and tax challenges, ongoing inventory reductions, and potential consumer demand issues in China affecting the Beauty segment.
Despite the company’s earnings and adjusted segment EBITDA aligning with Bank of America’s forecasts, the mixed performance across segments led to a cautious outlook. The guidance for the second quarter was notably above consensus, driven by a one-time tax benefit, yet underlying concerns about segment profitability and external economic pressures contributed to maintaining a neutral stance on the stock.