Jefferies & Co. Initiating Owens-Illinois At Buy (OI)

Jefferies & Co. is initiating coverage on shares of Owens-Illinois OI with a Buy rating and a $41 price target. In a note to investors Jefferies & Co. writes, "While OI has fallen into the "show me" category, we believe volumes should trough during the 2H10, and earnings should reaccelerate as glass shipments improve, while benefiting from its good operating leverage." Jefferies goes on to say, "We believe volumes should recover in 2011, with its competitors in N.A. sold out and the company likely to pick up the lion share of any improvement in beer demand. Further, with the major brewers stepping up its promotional spending and OI taking a more balanced approach on price, we believe the company should gain share." Shares of Owens-Illinois closed at $26.33 yesterday. Analyze Any Stock FREE! Click Here.