Stock price when the opinion was issued
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Large acquisitions expand addressable market. Controversies and approval weigh on stock. Remains a high growth company. Valuation attractive relative to peers. Unlock Premium - Try 5i Free
WPK is a bit of a 'sleeper'. It has $450M net cash, and is 53% owned by its parent. The stock is cheap. Looking at consensus estimates, EPS growth is really expected to slow down, and is essentially going to be flat next year. Expectations are for sales +5% and EPS to go from $2.33 to $2.34. Assuming nothing else happens, it looks like the 'ramp up' is likely over.
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We reiterate this manufacturer of food, beverage and healthcare product packaging as a TOP PICK. Recently reported EPS was up 16%, representing the highest Q1 earnings achievement in company history. It trades at 16x earnings and 1.7x book. We recommend maintaining the stop at $39, looking to achieve $53 -- upside potential over 21%. Yield 0.2%
(Analysts’ price target is $53.82)