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JP Morgan cuts RPC price target and sticks with 'overweight' rating
JP Morgan has reduced its price target for RPC Group after updating its model for the plastics products maker.
The JP Morgan analysts trimmed their target share price for RPC to 1,100p from 1,250p while keeping their 'overweight' rating on the stock.
Taking account of RPC's announced acquisition of Nordfolien and bringing their estimate for financing costs into line with company guidance, the analysts reduced their estimate for 2018 earnings per share by 1% to 72.9p. The revised figure remains above Bloomberg's 70.8p consensus figure.
The analysts upgraded earnings per share estimates for 2019 and 2020 by 2% to reflect the acquisition and share buybacks, offset by higher financing costs. They updated their price target for RPC shares "to reflect current peer company multiples".
"Our revised price target represents significant upside to the current share price and we reiterate our OW rating," the JP Morgan analysts said in a note to clients.