Container glass products manufacturer O-I Glass, Inc. (NYSE:OI) recently revealed that its subsidiary has entered into a definitive agreement to sell Cristar TableTop S.A.S., the company’s Cristar tableware business, to a Brazil-based tableware producer, Vidros Colombia S.A.S, for $95 million.
Following the news, shares of the company gained 3.2% to close at $11.91 on Monday.
The sale is in line with O-I Glass’ portfolio optimization program, which is aimed at exiting non-core businesses and enhancing focus on its core business.
Further, the proceeds from the sale will be used to pursue attractive growth opportunities and also pare its debt.
The CEO of O-I Glass, Andres Lopez, said, “We are deploying proceeds from the sale of non-core assets to help fund our expansion plan, leveraging our exciting new MAGMA solution, that includes investment with attractive returns.”
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Recently, Deutsche Bank analyst Debbie Jones reiterated a Hold rating on the stock. The analyst, however, lowered the price target from $15 to $13, which implies upside potential of 9.2% from current levels.
Consensus among analysts is a Hold based on 2 Buys, 6 Holds and 2 Sells. The average O-I Glass price target of $15.70 implies upside potential of 31.8% from current levels. Shares have gained 4.4% over the past year.
Hedge Funds’ Confidence
TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in O-I Glass is currently Negative. Moreover, the cumulative change in holdings across the 5 hedge funds that were active in the last quarter was a decrease of 560,400 shares.
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