PGH – Morgan Stanley rates the stock as Underweight

According to Morgan Stanley, Pact Group is managing cost pressures well in the core Packaging/Materials Handling segments though the Contract Manufacturing segment (CMS) remains troubled. Margins in CMS are expected to remain pressured throught FY22.

As a result, the broker lowers its earnings forecast for FY22 and reduces its target price to $2.70 froim $3.30. The company is Morgan Stanley’s least preferred in the sector. The Underweight rating is retained. Industry view: In-Line.

Sector: Materials.

 

Target price is $2.70.Current Price is $2.45. Difference: $0.25 – (brackets indicate current price is over target). If PGH meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →