Citi reiterates Buy rating on Ardagh Metal Packaging stock with $5 target

Investing.com - Citi has reiterated a Buy rating and $5.00 price target on Ardagh Metal Packaging (NYSE:PKG) S.A. (NYSE:AMBP), currently trading at $4.64, following the company’s second-quarter earnings beat. According to InvestingPro data, the stock has shown remarkable momentum with a 64% gain year-to-date.

Ardagh Metal Packaging reported second-quarter EBITDA of $210 million, exceeding consensus estimates of $201 million and the company’s own guidance range of $195-$205 million. Revenue reached $1.46 billion, surpassing consensus expectations of $1.35 billion. The company offers an attractive dividend yield of 8.62%, as highlighted in InvestingPro’s analysis, which includes 12 additional key insights about the stock.

The company’s earnings per share came in at $0.08, above the consensus estimate of $0.07. Global beverage can shipments increased 5% year-over-year, with particularly strong growth of 8% in the Americas region.

Following these results, Ardagh Metal Packaging has raised its full-year 2025 EBITDA guidance from $695-$720 million to $705-$725 million, reflecting both the second-quarter outperformance and foreign exchange factors. The consensus estimate stands at $720 million.

For the third quarter, the company is guiding for EBITDA between $200-$210 million, which exceeds the current consensus estimate of $198 million. The company’s 2025 volume guidance remains unchanged at 3-4% year-over-year growth.

In other recent news, Ardagh Metal Packaging announced a quarterly interim dividend of $0.10 per ordinary share, with payment scheduled for August 19, 2025. This decision was approved by the board of directors and will benefit shareholders of record as of August 7, 2025. Citi has reiterated its Buy rating on Ardagh Metal Packaging, maintaining a price target of $5.00 ahead of the company’s upcoming second-quarter earnings report. The investment firm anticipates that Ardagh Metal Packaging might increase its EBITDA guidance to between $705 million and $725 million, citing strong demand in North America and growth in Europe. Additionally, Citi expects a modest positive impact from foreign exchange movements. These developments come as the company prepares to release its earnings report.

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