BUZZ-BofA adjusts ratings on packaging and paper companies

Reuters2024-12-12
BUZZ-BofA adjusts ratings on packaging and paper companies

** BofA adjusts ratings of packaging and paper companies Amcor AMCR.N,485.F, Ardagh AMBP.N and Sylvamo SLVM.N

** Brokerage upgrades Amcor to "buy" from "underperform"

** Expects more relative return and growth catalysts; says pending merger with Berry BERY.N is interesting and does not see significant regulatory approval risk

** BofA says after rip-roaring market move post-election, investors may have more appetite for defensive stocks such as MCR

** Downgrades Ardagh to "underperform" from "buy"; cuts price objective to $4 from $4.90

** Brokerage says volumes could remain muted on customer-specific trends in Brazil through Q1, despite improvements since late Q3

** BofA downgrades Sylvamo to "underperform" from "neutral"

** Says trends are currently solid and has price increase baked into forecasts, but sees demand decline for copy paper

** Notes co is doing well with its Project Horizon cost-reduction initiative, though pulling forward some 2025 benefits into 2024

** Including session's moves, AMCR and SLVM stocks have risen 4% and 82%, respectively, this year, while AMBP is down 16%

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))

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