O-I Glass: Investor Day Highlights Long-Term Growth Strategy and Cost-Saving Initiatives

Narrow-moat-rated O-I Glass held its investor day during March 14 trading. Much of the focus was on the company's manufacturing network, where O-I believes it can unlock significant savings, and the company even increased its 2027 cost savings target. O-I has navigated challenging glass markets for much of the past two years as inventory destocking and weakness in North America have weighed heavily on results. While some end markets have seen recent improvements, O-I expects volumes to grow at a 1.5% compound annual growth rate through 2027. Even though we are encouraged by much of O-I's plans for the next few years as the company focuses on cost savings and production efficiency, demand headwinds out of the company's control could persist and extend near-term challenges. As such, we have maintained our fair value estimate of $22 per share.