Myers Industries upgraded to Overweight from Sector Weight at KeyBanc

KeyBanc last night upgraded Myers Industries (MYE) to Overweight from Sector Weight with a $21 price target The firm expects, at a minimum, meaningful cost restructuring and footprint rationalization in the near-term for Myers, and potentially significant portfolio changes including exiting distribution. These changes should lead to lower costs, higher margins, higher free cash flow, and faster debt paydown, ultimately leading to higher earnings power, the analyst tells investors in a research note. KeyBanc thinks new CEO Aaron Schapper “is seriously leaning into his role as a change agent.” The company’s board and management team “have finally come to realize drastic changes are required” to return Myers to growth and create value for shareholders, the firm contends.