Ball: Investor Day Highlights Eco-Friendly Packaging and Long-Term Growth Plans

Narrow-moat-rated Ball held its investor day during June 18 trading. The company directed the spotlight toward its view on environmental consciousness in the aluminum packaging industry and how its product portfolio is poised to benefit from this secular tailwind. As we have noted before, we share the view that aluminum cans will benefit in the long term from a shift toward eco-friendly packaging, with Ball particularly well positioned to capitalize. On balance, the investor day did not reveal any new information to materially alter our valuation, but it did offer guidance on the firm’s strategy for both growth and productivity gains as a pure-play aluminum packaging manufacturer following the sale of its aerospace business earlier this year. As such, we have maintained our fair value estimate of $60 per share.