Ball Corp. downgraded to Neutral from Outperform at Credit Suisse

Credit Suisse analyst Curt Woodworth downgraded Ball Corp. (BALL) to Neutral from Outperform with a price target of $58, down from $65, on more concerns about the mass beer category going forward given shifts in consumer spending away from the category as well as Ball’s exposure to Anheuser-Busch (BUD). As evident this quarter, Ball experienced significantly weaker volumes vs peers in North America and Credit Suisse sees this trend continuing into 2024 as mass beer looks challenged even apart from the AB specific issue. While negative operating leverage can be mitigated by strong net price and fixed cost reduction, a sustained imbalance in supply and demand will likely create more price competition, the firm adds.