Silgan Holdings price target raised to $52 from $50 at BMO Capital » 06:3909/2209/22/21
BMO Capital analyst Mark…
BMO Capital analyst Mark Wilde raised the firm's price target on Silgan Holdings to $52 from $50 and keeps an Outperform rating on the shares after the company's $485M acquisition of Gateway Plastics. The deal expands Silgan's closures and dispensers business, with potential tie-ins with its plastic container business, the analyst tells investors in a research note, adding that the Dispensing & Specialty Closures segment will contribute 48% of Silgan 2022 EBITDA. Wilde also nudges his FY21 EPS view by 3c to $3.38 and FY22 view by 6c to $3.56.
|Over a week ago|
Silgan Holdings acquires Gateway Plastics for $485M » 16:0609/2009/20/21
Silgan Holdings announced…
Silgan Holdings announced that it has acquired Gateway Plastics. This business manufactures and sells dispensing closures and integrated dispensing packaging solutions, such as a combined container and closure or 100% recyclable dispensing beverage pods, to consumer goods product companies primarily for the food and beverage markets. It operates a large, state-of-the-art manufacturing facility in Mequon, Wisconsin and is projected to generate approximately $150M in sales and approximately $46M in adjusted EBITDA for 2021. The purchase price for this acquisition was $485M, subject to customary adjustments including for net debt and working capital. With this acquisition, Silgan expects to realize tax benefits having a net present value of approximately $90M as a result of the step-up in tax basis of the assets from this acquisition. In addition, Silgan expects to realize annual synergies as a result of this acquisition of approximately $2M within 12 months primarily through procurement savings. Silgan funded the purchase price for this acquisition with revolving loan borrowings under its senior secured credit facility. This acquisition is expected to be slightly accretive to the company's earnings in 2021, excluding the impact of required purchase accounting adjustments, with additional accretion expected in 2022.
Silgan Holdings initiated with a Hold at Truist » 16:1309/1309/13/21
Truist analyst Michael…
Truist analyst Michael Roxland initiated coverage of Silgan Holdings with a Hold rating and $46 price target as he started the packaging sector and six names within the broader industry with "a constructive bias." He cites valuation, a total return trailing peers and plastic bans headwinds, calling Silgan a "show-me" story.
|Over a month ago|
Silgan Holdings backs FY21 adjusted EPS view $3.30-$3.45, consensus $3.38 » 07:2507/2807/28/21
The company said,…
The company said, "The Company maintained its estimate of adjusted net income per diluted share for the full year of 2021 in the range of $3.30 to $3.45, a 10.3 percent increase at the midpoint of such range over record adjusted net income per diluted share of $3.06 in 2020."
Silgan Holdings sees Q3 adjusted EPS 95c-$1.10, consensus $1.09 » 07:2407/2807/28/21
The company said,…
The company said, "The Company is also providing an estimate of adjusted net income per diluted share for the third quarter of 2021 in the range of $0.95 to $1.10, as compared to a record $1.04 in the third quarter of 2020. Given the uncertainties of the timing of the fruit and vegetable harvest in the U.S. and Europe, the results of the back half of the year could shift between the third and fourth quarters. The third quarter and full year estimates of adjusted net income per diluted share for 2021 exclude the impact from rationalization charges and loss on early extinguishment of debt and are predicated on the ability to obtain adequate raw material supply and to benefit from the lagged pass through of higher resin costs as these costs are expected to begin to abate."
Silgan Holdings reports Q2 adjusted EPS 85c, consensus 83c » 07:2207/2807/28/21
Reports Q2 revenue…
Reports Q2 revenue $1.35B, consensus $1.29B. "We are very pleased to have maintained exceptionally strong performance levels in the second quarter of 2021, delivering earnings of $0.85 per diluted share which matches the unprecedented pandemic driven second quarter 2020 results," said Tony Allott, chairman and CEO. "Our Dispensing and Specialty Closures segment continued to benefit from strengthening beauty and fragrance markets and the inclusion of the Albea operations. This continued volume growth along with great operating performance more than offset the significant unfavorable impact of unprecedented spikes in raw material costs and the contractual lags in passing these on to customers. Our Metal Container segment continued to experience sustained strong demand levels but was challenged by lower inventory levels to meet this demand, largely as a result of unacceptable steel supply performance, and by tight labor markets across the supply chain. Our Custom Container segment once again delivered improved profitability primarily on the strength of its product mix and operating performance, despite the anticipated decline in volumes and the impact of significant raw material inflation," continued Mr. Allott. "While the raw material and labor supply challenges are real across all of our operating segments and will continue to have a negative impact on the rest of the year, given other areas of strong performance we are holding our estimate of full year 2021 adjusted earnings per diluted share in a range of $3.30 to $3.45, which represents a 10.3 percent increase at the midpoint over record 2020 levels. We are also increasing our free cash flow estimate to approximately $400 million from $380 million primarily due to anticipated lower ending inventory levels. For the third quarter of 2021, we anticipate adjusted earnings per diluted share in a range of $0.95 to $1.10, as compared to a record $1.04 in the third quarter of 2020. Our current third quarter estimate anticipates continued strong product demand in key markets and a robust harvest, which will be partially offset by ongoing raw material and labor supply challenges," concluded Mr. Allott.
Silgan Holdings appoints Adam Greenlee as CEO starting September » 08:3407/0107/01/21
Silgan Holdings announced…
Silgan Holdings announced that, as part of the continuation of its long-term succession planning, its Board of Directors has appointed Adam J. Greenlee as Chief Executive Officer of the Company, effective September 1. Mr. Greenlee will also continue as President of the Company. Mr. Greenlee joined Silgan in 2005 and ran its North American Closures operations prior to being appointed Executive Vice President of the Company in October 2007. Mr. Greenlee was named Chief Operating Officer of the Company in 2009 and was appointed President of the Company in April 2019. Tony Allott has served as Chief Executive Officer of the Company since March 2006, only its second CEO since its founding in 1987. Mr. Allott will continue to serve as Executive Chairman of the Company. "Adam and I have worked closely together on every major activity of Silgan for the past decade and he has been responsible for the oversight of each of our operating businesses in recent years. Just as importantly, Adam understands and personifies the unique culture of our Company and has consistently shown his ability to deliver results as Silgan has continued on its path of growth and success. While I am sure his leadership will explore new ideas and opportunities, I am equally confident it will be founded on the ideals and principles that have served us so well in the past," said Tony Allott, Chairman and CEO.
|Over a quarter ago|
Fly Intel: Top five analyst initiations » 09:5805/2005/20/21
MDGL, AGR, BLL, SLGN, TROX
Catch up on today's…
Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Madrigal Pharmaceuticals (MDGL) assumed with a Buy at Goldman Sachs. 2. Avangrid (AGR) initiated with an Equal Weight at Barclays. 3. Ball Corp. (BLL) initiated with a Buy at Longbow. 4. Silgan Holdings (SLGN) initiated with a Buy at Longbow. 5. Tronox (TROX) initiated with a Buy at BofA. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.
Silgan Holdings initiated with a Buy at Longbow » 07:0405/2005/20/21
Longbow analyst Alton…
Longbow analyst Alton Stump initiated coverage of Silgan Holdings with a Buy rating and $58 price target. With the volume growth outlook better than its been for the company's metal containers segment in over 20 years, the shares will eventually trade at a premium versus the company's five-year average of nine-times enterprise value to EBITDA, Stump tells investors in a research note. He believes increased at-home trends should continue to benefit Silgan long-term.
Silgan Holdings ses FY21 EPS $3.30-$3.45, consensus $3.37 » 07:2204/2804/28/21
The Company maintained…
The Company maintained its estimate of adjusted net income per diluted share for the full year of 2021 in the range of $3.30 to $3.45, a 10.3 percent increase at the midpoint of such range over record adjusted net income per diluted share of $3.06 in 2020. The Company is also providing an estimate of adjusted net income per diluted share for the second quarter of 2021 in the range of $0.75 to $0.85, as compared to a record $0.85 in the second quarter of 2020. The second quarter of 2020 benefited from an outsized liquidation of inventory to meet strong customer demand as pantries were filled at the beginning of the Covid-19 outbreak. The current year second quarter estimate anticipates continued strong product demand, which will be partially offset by a significant impact from contractual lags in passing through the unprecedented inflation in resin and other raw materials. The full year and second quarter estimates of adjusted net income per diluted share for 2021 exclude the impact from rationalization charges and loss on early