Analyst Note| Charles Gross |
Surging sales showed no sign of slowing down in Ball's fourth quarter. Sales rose a remarkable 14% year over year, as beverages have flowed out of bars and restaurants and into homes. Ball, among peers, has been producing flat-out and yet cannot keep up with demand. Accordingly, after a record year of capital spending, Ball is doubling down and aims to spend $1.5 billion next year to add capacity. While near-term results should be fantastic, as conditions normalize and people begin to eat out again, we could see supply overshoot demand. We have left our $49 per share fair value and narrow moat rating unchanged.