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Research Alert: CFRA Lowers Opinion On Shares Of Silgan Holdings Inc. To Buy From Strong Buy
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Research Alert: CFRA Lowers Opinion On Shares Of Silgan Holdings Inc. To Buy From Strong Buy
Jul 30, 2025 12:33 PM

03:05 PM EDT, 07/30/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target price by $11 to $51 on an EV/EBITDA of 8.8x our 2026 estimate, a discount to SLGN's five-year average of 9.0x reflecting higher debt levels than our previous assumptions. Leverage (net debt/LTM adjusted EBITDA) increased from 4.7x in Q1 to 5.0x in Q2, significantly above the peer average of 4.0x. We forecast leverage declining to 4.2x for 2025 and 3.7x for 2026, dependent on full allocation of FCF toward debt repayment, which we estimate at $430 million and $450 million, respectively. Underperformance on FCF generation could significantly impact valuation. While the company achieved record Q2 2025 performance and successfully integrated the Weener acquisition ahead of schedule, issues in North American beverages and a customer bankruptcy in metal containers led management to revise full-year 2025 adjusted EPS guidance lower to $3.85-$4.05 from the prior $4.00-$4.20 range. We lower our 2025 EPS estimate by $0.18 to $4.01 and 2026 by $0.13 to $4.40 and downgrade our rating to Buy.

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