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Balanced Outlook for Berry Global Group Amid Mixed Financial Signals and Market Uncertainties

Balanced Outlook for Berry Global Group Amid Mixed Financial Signals and Market Uncertainties

Mizuho Securities analyst Edlain Rodriguez has maintained their neutral stance on BERY stock, giving a Hold rating on February 4.

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Edlain Rodriguez has given his Hold rating due to a combination of factors impacting Berry Global Group’s financial outlook. Despite the company reporting slightly better than expected first-quarter results, with a 4% year-over-year increase in EBITDA, the FY25 EBITDA guidance was reduced by 2%. This trimming of projections reflects a cautious stance on future earnings potential, even though the company maintained its EPS guidance.
Additionally, while Berry Global experienced a modest improvement in overall volume, with a 2% increase driven by gains in emerging markets and the North American food and beverage sector, there were some challenges in the Flexibles segment, which saw a slight decline. The ongoing transaction with Amcor also adds uncertainty, as Berry’s stock price will be influenced by Amcor’s stock price fluctuations. These elements combined with a stable price target of $72, indicate a balanced view of potential risks and opportunities, justifying the Hold rating.

In another report released on February 4, Morgan Stanley also maintained a Hold rating on the stock with a $72.00 price target.

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