Berry Global assumed with a Market Perform at Raymond James

Raymond James analyst Matt Roberts assumed coverage of Berry Global with a Market Perform rating and no price target as part of a broader research note on Packaging names. Heading into earnings, newfound volume concerns are weighing on shares in the group, with investor unease shifting from destocking to the impact of potential consumer weakness, the analyst tells investors in a research note. While Raymond James is adjusting its volume estimates slightly lower in the near term to reflect some conservatism for the second half however, the firm continues to expect a resumption of growth in 2024. The firm adds however that while it remain encouraged by Berry’s recent capital allocation shift towards shareholder returns and debt paydown following an acquisitive history, the company’s looming debt maturities in 2026 and a likely need to refinance in the current environment is likely to remain an overhang.