Ardagh Metal Packaging initiated with an Underweight at Morgan Stanley

Morgan Stanley initiated coverage of Ardagh Metal Packaging with an Underweight rating and $3.20 price target. Ardagh is a pure play global beverage can company within the oligopoly, the analyst tells investors in a research note. The firm says that while company offers solid volume and EBITDA growth prospects, the shares are likely to underperform due to its challenged cash flow profile. Ardagh is burdened by a highly levered balance sheet, elevated interest expense, and sizable dividend commitments to its parent company, which limit its financial flexibility, contends Morgan Stanley.