Anchor Glass Container initiated with "neutral"

Analysts at Merrill Lynch initiate coverage of Anchor Glass Container (AGCC) with a "neutral" rating.

Shares of Anchor Glass Container, a leading US-based supplier of glass containers, primarily to the beverages sector, are currently trading at $16.20.According to Merrill Lynch’s research note published this morning, the company is the third largest manufacturer of glass containers in the US.The analysts express their concern, however, regarding the company’s overdependence on its top customer, Anheuser-Busch. The majority of Anchor Glass Container's volumes are derived from the beverage sector, the analysts mention. There has, however, been a significant decline in the beverage sector's performance this year, on account of adverse climatic conditions. The company’s 2003 glass container shipments and net sales are expected to decline by 2.9% and 0.9%, respectively, from the previous year’s levels, the analysts say.

A new contract from Cadbury Schweppes would boost Anchor Glass Container’s 2004 volumes and net sales growth, Merrill Lynch believes. The company may also benefit from the price momentum expected next year, the analysts add. Merrill Lynch anticipates normalized top-line growth for the company in 2005, with an improved product portfolio and enhanced productivity as the key drivers. The company’s stock trades at a significant premium to its peers, which warrants the current rating, the analysts say.

The EPS estimates for 2003 and 2004 are -$1.67 and $0.74, respectively. The P/E estimate for 2005 is 21.9x.

Merrill Lynch initiates coverage of Anchor Glass Container with a "neutral" rating.

600450 Anchor Glass Container initiated with "neutral"
Date: 6 November 2003

See more news about:

Others also read

Local quality glass producer Emirates Glass Limited has won contracts to supply 68,000 square metres of its high quality EmiCool glass to five major projects in Dubai.
Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
Praxair, Inc. (NYSE: PX) today announced that its subsidiary Praxair Canada Inc.'s specialty gases plant in Paris, Ontario, Canada, is one of Praxair's first specialty gases plants in North America to complete the upgrade to ISO 9001:2000, the latest ISO 9000 standard for quality.
KUB Malaysia Bhd has accepted an offer from Nippon Sheet Glass Co Ltd (NSG) to acquire its 15% stake in Malaysian Sheet Glass Bhd (MSG) for RM32.6 million in cash, or RM2.68 per share.
Co-Ventures in Glass Containers (CVIGC, Ltd.) of Tampa, Florida, USA and Micro-Tek Canada, Inc. Of Toronto, Canada are excited to announce the beginning of a long term joint venture to combine their extensive experiences and resources to offer the Glass Container Industry globally a best value alternative for all their outsourcing needs in manufacturing, operations and technical assistance agreements, specifically targeted to the smaller manufacturers who have found the larger service companies to be cost and profit prohibitive.The principals of the two companies have found a global need for smaller glass companies who require excellent technical resources to properly compete within the industry without the high costs of employing their own staffs or outsourcing their requirements to the larger service companies whose own operating costs and overhead are substantial.
China's largest automobile glass maker Fuyao Glass Industry Group Co, Ltd, won its case against the dumping ruling of the US Department of Commerce (DOC).

Add new comment