Analyst Note| Charles Gross |
Aluminum can sales remained heady in Ball's first quarter, as people continued to spend more time at home and less time in restaurants. Beverage cans have the added tailwind of being ESG-friendly, thanks to their high global recycling rates. These factors fueled a 12.2% rise in consolidated revenue and a 12.4% increase in adjusted operating income. We expect the pace of growth to moderate a bit as the year goes on, but sales should still rise by a low-double-digit percentage. We have raised our fair value estimate slightly to $50 per share, up from $49, after slightly increasing our near-term forecasts. Our narrow-moat rating stands. Nevertheless, shares trade well above our fair value estimate.