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).



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