Citi downgrades Pactiv Evergreen after Novolex's $6.7 bln take-private deal

Pactiv Evergreen

10/12/2024 11:51

** Brokerage Citi downgrades packaging products maker Pactiv
Evergreen  PTVE.O  to "neutral" from "buy"
    ** Sees limited upside to shares following Apollo Global
Management-owned  APO.N  Novolex's take-private deal for PTVE
for $6.7 bln
    ** Says the industrial logic of the combination appears
sound since Novolex and PTVE are both packaging product
producers and distributors
    ** Says consolidation is necessary for sector profitability
as packagers struggle with volume growth and pricing power;
raises PT to $18 from $13
    ** Four of five brokerages rate the stock "buy" or higher,
and one "hold"; with a median PT of $15.50 - LSEG data
    ** Up to Monday's close, stock had risen 26.6% YTD

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