BofA raises O-I Glass stock price target to $15 from $13

Tuesday, BofA Securities analyst George Staphos increased the price target on O-I Glass Inc. (NYSE: NYSE:OI) to $15, up from the previous $15, while reiterating a Buy rating on the shares. The adjustment reflects the analyst’s confidence in the company’s valuation and the anticipated benefits from its Fit to Win (FTW) program. According to InvestingPro data, analyst targets for O-I Glass range from $11 to $20, with the stock currently trading near its 52-week high of $14.15.

In the past week, O-I Glass reported first-quarter earnings, showcasing substantial performance in its Americas segment and reaffirming its 2025 guidance. The market has responded positively, with InvestingPro data showing a robust 9.05% return over the past week. This comes amid broader sluggish consumer trends. Staphos noted the company’s urgency in enhancing performance through various initiatives, including FTW. InvestingPro analysis suggests the company is currently trading above its Fair Value, though analysts expect net income growth this year.

The analyst’s optimistic outlook is also based on improving beverage packaging trends and potential strengths in the European market, especially in the beer sector. Staphos believes that the company’s management is capable of achieving strategic goals in the near term.

The revision in the price target accompanies an update in the valuation methodology for O-I Glass. Staphos has increased the valuation multiples from 9 times earnings to 9.5 times and from 5-6 times EBITDA to 5.5-6.5 times. Consequently, the price objective (PO) has been raised from $13 to the new target of $15.

Staphos’ commentary highlights the expectation that the company’s strategic initiatives will bear fruit, leading to a more favorable valuation of O-I Glass stock. The analyst’s maintained Buy rating indicates a positive outlook on the stock’s potential for growth.

In other recent news, O-I Glass Inc. reported impressive financial results for the first quarter of 2025, with earnings per share (EPS) reaching $0.40, significantly surpassing the forecasted $0.23. The company’s revenue also exceeded expectations, coming in at $1.6 billion compared to the anticipated $1.55 billion. The Fit to Win program played a key role, contributing $61 million in savings, which helped offset challenges in Europe where operating profits declined. O-I Glass has launched the Total (EPA:TTEF) Organization Effectiveness program, aiming to optimize its operations further. In terms of analyst activity, Truist Securities noted the company’s progress and strong quarterly performance. Looking ahead, O-I Glass has provided an optimistic outlook for 2025, projecting adjusted EPS between $1.2 and $1.5, reflecting a 50-85% improvement from 2024. The company remains cautious due to potential market uncertainties related to trade policy changes but anticipates stable volumes year-over-year.

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