Silgan Holdings stock rating upgraded by BofA Securities on valuation

Published 28/08/2025, 12:14
Silgan Holdings stock rating upgraded by BofA Securities on valuation

Investing.com - BofA Securities upgraded Silgan Holdings (NYSE:SLGN) from Neutral to Buy on Thursday, raising its price target to $57.00 from $53.00. The packaging company, with a market capitalization of nearly $5 billion and a beta of 0.69, has demonstrated resilience through consistent dividend payments, having raised its dividend for 21 consecutive years.

The upgrade comes after Silgan’s stock dropped over 15% following reduced earnings guidance, weak beverage-closure volumes, and food can-customer bankruptcy issues.

BofA Securities noted that Silgan currently trades at approximately 11-12 times price-to-earnings on 2025-2026 estimates with an implied flattish growth rate, compared to industry averages closer to 14 times P/E and 1-2% growth rates.

The firm described Silgan as "partly defensive" due to its food can business, but indicated the recent sell-off and potential for improved volumes supports the Buy rating.

BofA Securities also maintains Buy ratings on other packaging companies including Sealed Air (NYSE:SEE), Sonoco (NYSE:SON), and Graphic Packaging (NYSE:GPK), which it believes discount depressed growth rates and should benefit from an economic pickup.

In other recent news, Silgan Holdings Inc. reported its Q2 2025 financial results, where the company posted an adjusted earnings per share (EPS) of $1.01, which was slightly below the analyst forecast of $1.03. However, the company’s revenue exceeded expectations, coming in at $1.54 billion compared to the anticipated $1.53 billion. In addition to its earnings report, Silgan Holdings announced a quarterly cash dividend of $0.20 per share on its common stock. This dividend will be payable on September 16, 2025, to shareholders recorded as of September 2, 2025. These developments are part of the company’s recent updates aimed at keeping investors informed. While the earnings miss may have raised concerns, the revenue beat and dividend declaration highlight ongoing financial activities.

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