Jefferies & Co. Initiating Ball Corp. At Buy (BLL)

Jefferies & Co. is initiating Ball Corp. BLL at a Buy with a $71 price target. In the report Jefferies & Co. writes, "With shipments in the N.A. bev can industry stabilizing, and BLL seeing strong growth in Europe and China, the fundamentals in its business are recovering nicely." Later in the report Jefferies goes on to say, "We are attracted to BLL's strong FCF generation ($500 mil run rate), and continue to believe the company should be able to unlock significant value for shareholders. Absent of an acquisition, BLL will be using the majority of its FCF for share buybacks -- limiting downside risk to the stock. While most investors are aware of BLL's FCF profile, many overlook its ability to enhance earnings by 5%-10% each year simply by putting its FCF to work." Shares of Ball Corporation closed at $57.70 yesterday. Analyze Any Stock FREE! Click Here.