Can manufacturers fall as Wells Fargo cites macro challenges and demand pressure

Ball

16/01/2025 15:29

** Wells Fargo says beverage can manufacturers including
Ball  BALL.N  and Ardagh  AMBP.N  face significant headwinds due
to challenging macro backdrop, trade policy and tariff risks,
the "Make America Healthy Again" agenda, and Surgeon General's
warning on alcohol
    ** BALL down as much as 2.2% at $53.08 in early trade after
brokerage downgrades it to "underweight" from "equal weight", PT
cut to $49 from $56
    ** Brokerage expects concerns with co's limited focus on
sparkling water and heavy exposure to beer - demand of which is
declining
    ** AMBP down as much as 5.6% at $2.68 after downgrade to
"equal weight" from "overweight", PT cut to $3.35 from $3.60
    ** Limited cash flow due to dividend obligations - brokerage
    ** Adds co is most vulnerable among beverage can
manufacturers it covers, on concerns of low demand and 2 bln to
3 bln units of unused capacity in North America
    ** BELL and AMBP fell ~4% and ~21%, respectively in 2024

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))