UBS Slashes O-I Glass to Neutral, Flags European Profit Collapse
OI is trading near its 52-week low of $5.3 (4.6% above the low).
Summary
UBS downgraded O-I Glass to Neutral from Buy with a Street-low $6 price target, down from $11, citing a challenging near-term outlook. The analyst highlighted that H1 2026 EBIT in Europe plunged to $6M from $158M a year earlier, driven by energy cost spikes from the Iran conflict, two furnace outages, and lower cost savings. Volumes have declined for three straight years and are modeled to fall another 3%-5% in 2026, with each percentage point of volume loss costing $40M-$45M in pre-tax earnings. This follows the company's Q2 loss of $6.33 per share and guidance cut in late July, adding further pressure to a stock already down over 60% year-to-date.
At the time of this announcement, OI was trading at $5.55 on NYSE in the Manufacturing sector, with a market capitalization of approximately $852M. The 52-week trading range was $5.30 to $16.91. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.