The target price has been reduced to $9.
In a research note published yesterday, the analyst mentions that the company reported disappointing EPS results for 2Q, primarily due to an unfavourable energy pricing environment. Plastic conversions are likely to adversely affect Anchor Glass Container's share price in the near term, the analyst say. Moreover, the company's 2005 earnings are likely to remain under pressure partially due to high energy costs, Banc of America Securities adds. The EPS estimates for 2004 and 2005 have been reduced from $0.90 to -$0.15 and from $0.90 to $0.65, respectively.