Wells Fargo has increased its price target for AptarGroup (ATR, Financial) from $170 to $173, while maintaining an Overweight rating on the company's stock. The financial firm observes that despite initial uncertainties in the Packaging & Containers industry as the second quarter began, overall performance met expectations. Additionally, foreign exchange provided some benefits for companies with international exposure. The beverage can segment is anticipated to outperform others, although the industry faces challenges from consumer behavior focused on value.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for AptarGroup Inc (ATR, Financial) is $171.50 with a high estimate of $205.00 and a low estimate of $135.00. The average target implies an upside of 9.91% from the current price of $156.03. More detailed estimate data can be found on the AptarGroup Inc (ATR) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, AptarGroup Inc's (ATR, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AptarGroup Inc (ATR, Financial) in one year is $139.64, suggesting a downside of 10.5% from the current price of $156.03. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AptarGroup Inc (ATR) Summary page.
ATR Key Business Developments
Release Date: May 02, 2025
- Adjusted Earnings Per Share (EPS): $1.20, with a 5% increase over the prior year period when neutralizing for currency effects and tax.
- Reported Sales: Decreased 3%, including a 3% foreign currency translation headwind; core sales were flat compared to the prior year period.
- Adjusted EBITDA: $183 million, a 3% increase from the prior year period.
- Effective Tax Rate: 25.8%, up from 20.5% in the prior year, due to a temporary surtax in France and lower tax benefits from share-based compensation.
- Pharma Segment Core Sales: Increased 3%, with prescription core sales up 10% and consumer healthcare core sales down 10%.
- Beauty Segment Core Sales: Decreased 3%, with fragrance, facial skincare, and color cosmetics core sales down 11%.
- Closure Segment Core Sales: Decreased 2%, with product sales growth offset by lower tooling sales.
- Consolidated Gross Margin: Expanded by 160 basis points.
- Consolidated Adjusted EBITDA Margin: Expanded by 120 basis points to 20.7%.
- Free Cash Flow: $26 million, with cash from operations at $83 million and capital expenditures of $57 million.
- Share Repurchases: More than 500,000 shares repurchased for about $80 million.
- Cash Balance: $126 million as of March 31.
- Net Debt: $870 million with a leverage ratio of 1.16.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AptarGroup Inc (ATR, Financial) reported adjusted earnings per share of $1.20, with a 5% increase over the prior year when neutralizing for currency effects and tax.
- The pharma segment showed strong demand, particularly in proprietary drug delivery systems, with core sales growing 4% in the quarter.
- The company was recognized for its sustainability efforts, achieving the EcoVadis platinum level rating for the fifth consecutive year.
- AptarGroup Inc (ATR) ramped up share repurchases in the first quarter, buying over 500,000 shares for about $80 million, reflecting confidence in the company's future.
- The company has a robust balance sheet with a cash balance of $126 million and a leverage ratio of 1.16, indicating financial stability.
Negative Points
- Reported sales decreased by 3%, impacted by a foreign currency translation headwind of approximately 3%.
- The beauty segment faced challenges, with core sales decreasing by 3% due to lower sales of prestige fragrance products, particularly in Europe.
- The closure segment experienced a 2% decrease in core sales, affected by lower tooling sales and the discontinuation of activities in Argentina.
- The effective tax rate increased to 25.8% from 20.5% in the prior year, due to a temporary surtax in France and lower tax benefits from share-based compensation.
- Consumer healthcare core sales decreased by 10%, driven by softer demand for nasal decongestants and saline solutions, as inventory management continued at the customer level.
