03:10 PM EDT, 03/15/2024 (MT Newswires) -- Berry Global Group's ( BERY ) stock will likely be under pressure ahead of the planned spin off and merger of health, hygiene and specialties business with Glatfelter ( GLT ) , a combo investors might not want, RBC Capital Markets said in a note emailed Friday.

According to the firm, the $1 billion that Berry is due to receive as a result of the split may ultimately be leverage neutral as the company will end up retaining ownership of Glatfelter's ( GLT ) $810 million in net debt following the merger.

RBC Capital Markets said it is "less optimistic" on the stock also because of little volume improvement across Berry's business segments.

The firm downgraded the stock to sector perform from outperform and lowered its price target to $62 from $72 previously.

Price: 59.44, Change: -0.52, Percent Change: -0.87