BNP Paribas Exane has started coverage on O-I Glass (OI, Financial), assigning the company an Outperform rating. The financial institution has set a price target of $18 for OI, reflecting optimism about the company's future performance. This positive assessment suggests that O-I Glass could offer promising investment opportunities for investors seeking growth stocks.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for O-I Glass Inc (OI, Financial) is $15.63 with a high estimate of $18.00 and a low estimate of $13.00. The average target implies an upside of 6.29% from the current price of $14.70. More detailed estimate data can be found on the O-I Glass Inc (OI) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, O-I Glass Inc's (OI, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for O-I Glass Inc (OI, Financial) in one year is $14.47, suggesting a downside of 1.56% from the current price of $14.7. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the O-I Glass Inc (OI) Summary page.
OI Key Business Developments
Release Date: April 30, 2025
- Adjusted Earnings Per Share (EPS): $0.40 per share, down from last year but exceeded expectations.
- Sales Volume Growth: Increased by more than 4% compared to last year.
- Fit to Win Program Savings: $61 million in savings for the first quarter.
- Segment Operating Profit: Improved significantly in the Americas; down in Europe.
- Inventory Reduction: Inventory down approximately $225 million from the same time last year.
- Full Year 2025 Guidance: Adjusted earnings expected to improve between 50% and 85% from 2024, ranging between $1.20 and $1.50 per share.
- Free Cash Flow: Expected significant rebound due to strong operating performance and lower CapEx investment requirements.
- Tariff Exposure: 4.5% of global sales volume exposed to new tariffs, primarily imports from Europe.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- O-I Glass Inc (OI, Financial) reported first quarter adjusted earnings of $0.40 per share, exceeding management's expectations due to stronger than anticipated sales volume growth and higher Fit to Win benefits.
- The Fit to Win program generated $61 million in savings during the first quarter, exceeding initial plans and contributing significantly to better-than-expected results.
- Segment operating profit improved significantly in the Americas, reflecting healthier fundamentals and benefits from strategic initiatives.
- Shipments increased by more than 4% compared to last year, with strong demand in beer, spirits, and food categories across the Americas and Europe.
- The company is on track to achieve its 2025 savings target of $250 million and $650 million cumulatively by 2027 through its Fit to Win program.
Negative Points
- Adjusted earnings were down from the previous year, despite exceeding expectations.
- Results in Europe trended down due to lower net prices and temporary production downtime, partially offset by Fit to Win benefits.
- There is elevated uncertainty regarding new tariff policies, which may impact near-term shipments and create market volatility.
- The company incurred about $58 million of unabsorbed fixed costs due to significant capacity curtailments in Europe.
- O-I Glass Inc (OI) faces competitive pressures and excess capacity in Europe, impacting net pricing and operating costs.
