O-I Glass initiated with a Buy at UBS

UBS initiated coverage of O-I Glass with a Buy rating and $26 price target. UBS believes glass fundamentals are not as bearish as recent volume trends would suggest owing to substantial destocking impacts and short cycle contract positioning, arguing that higher price point glass demand held up better than many other substrates across 2H22 and early 2023 with stable growth in wine and spirits. OI‘s elasticity impact on volumes and de-rating is unwarranted, the analyst tells investors in a research note, as its EBITDA outlook remains supported by volume recovery and a less exaggerated pricing impact given aggressive industry action to rightsize capacity.