Ardagh Group

Confidence evident in expansion plans

  • Sectors : Consumer packaging
  • Companies : Ardagh Group

Ratings and price correct at time of issue.

  • Ardagh Group

    Closing Price: 1633c

  • RATING 12/04/17

  • PREVIOUS RATING N/A

DAVY VIEW

Ardagh’s belief in its medium-term prospects is evident with the announcement of a $1.8bn investment in growth projects between 2021 and 2024. This represents a big vote of confidence in the growth opportunity, particularly in beverage cans, and this faith is supported by long-term customer contracts. More immediately, Ardagh is well placed to post robust full year results after a Q3 that comfortably exceeded expectations. The Ardagh share price gained almost 12% following the results announcement and the news of the investment plans. However, the stock’s valuation continues to screen well, especially with the potential for a step-up in profitability over time.

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Oct 23 2020, 07:30 IST/BST

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